28th Jan 2025 10:50
(Alliance News) - AG Barr on Tuesday said it expects to deliver strong top line growth driven by demand for its three core soft drinks.
The Cumbernauld, Scotland-based soft drink and energy drink manufacturer said Irn-Bru, Rubicon and Boost had all performed strongly in the financial year ending January 25, with Rubicon the stand-out performer.
Chief Executive Euan Sutherland said the firm had "sustained brand momentum despite the well trailed wider market pressures, and continue to make good progress towards our margin target."
In response, shares in AG Barr rose 5.5% to 615.00 pence each in London on Tuesday morning.
In a trading update, AG Barr said annual revenue is expected to be around GBP420 million, up 5% from GBP400 million a year prior. This is line with company compiled consensus.
Full year adjusted operating margin is expected to show strong improvement to 13.5% from 12.3%, helping to drive double digit profit growth.
Company compiled consensus is for adjusted pretax profit of GBP57.4 million and adjusted operating margin of 13.4%.
In the year to January 28, 2024, AG Barr reported adjusted profit before tax of GBP50.5 million.
AG Barr said Rubicon achieved another year of double digit revenue growth.
Irn-Bru also delivered strong revenue growth and is now one of the top five carbonates in the UK, the firm said, while Boost gained momentum in the second half with a step up in profitability.
Funkin's ready-to-drink business continued to grow at pace through retail distribution gains and innovation, the firm added.
Capital spending in the year of around GBP19 million provided increased capacity and capability, the firm noted.
Cash balances improved to GBP60 million at the year-end, rising from GBP53.6 million a year prior.
Sutherland said the firm is "committed to consistent long-term revenue growth and have confidence in further margin improvement as per our previous guidance. Our expectations for 2025/26 are unchanged and in line with market expectations."
A company compiled consensus for the financial year to January 2026 for revenue is GBP439.4 million, adjusted pretax profit of GBP65.0 million and adjusted operating margin of 14.5%.
Full year results will be reported on March 25. In addition, the business plans to hold analyst and investor visits to its Cumbernauld and Milton Keynes sites in April and May and a Capital Markets event in June.
By Jeremy Cutler, Alliance News reporter
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