AG Barr profits boosted by acquisitions and demand for soft drinks
- The Cumbernauld-based company is best known for manufacturing Irn-Bru
- Its sales rose by around a third to £210.4m during the 26 weeks ending July 30.
- AG Barr recently acquired energy drink maker Boost and MOMA Foods
AG Barr’s half-year profits soared thanks to recent acquisitions and rising soft drink sales.
The Cumbernauld-based company, best known for making Irn-Bru, posted pre-tax profit growth of 12.6 per cent to £27.8 million for the 26 weeks ending July 30.
Turnover rose by around a third to £210.4m due to price increases, volume growth and increased marketing investment in brands such as Funkin cocktails.
Scotland’s favorite: Cumbernauld-based AG Barr is best known for making Irn-Bru
Irn-Bru further expanded its share of the England and Wales soft drinks market after purchases of Scotland’s most popular soft drink increased by 8 per cent.
However, the overwhelming majority of the sales growth was driven by the acquisitions of energy drink maker Boost and oat milk maker MOMA Foods.
In December last year, Barr bought the first business in a £32m deal before acquiring the second, which also sells granola, porridge and bircher muesli, a fortnight later.
Roger White, outgoing CEO of AG Barr, said: “We have made significant financial and strategic progress in the first half and have exciting plans for the remainder of the year to sustain our growth momentum.”
Following the result, the FTSE 250 business has maintained its recently revised full-year guidance for profits to be “marginally above” the top end of analysts’ forecasts despite wet weather affecting trading during July and August.
Russ Mould, chief investment officer at AJ Bell, said the outlook was “a very credible result and suggests the company’s product portfolio remains very attractive”.
He added: “The affordable luxury of a soft drink is the type of purchase people are least likely to put off even if they feel the pressure and, if they like the brand, they are unlikely to be put off by a few pence.” is added to the purchase price.
In August, White declared his intention to step down within the next 12 months, having spent nearly two decades at the helm, making him one of the longest-serving chief executives of a listed UK company. bag.
He was the first CEO from outside the Barr family when he took the top job in 2004.
Since then, AG Barr shares have more than quadrupled thanks to acquisitions and the sustained popularity of Irn-Bru.
His departure comes after former chairman Robin Barr, reportedly one of only three people who know the Irn-Bru recipe, left the company in May after 58 years on its board.
AG Barr Stock They were down 0.1 per cent at 484.5p on Tuesday morning and have fallen around 10 per cent in the last 12 months.