Attorney General Barr boosted by demand for soft drinks despite bad weather

AG Barr’s sales were boosted by strong demand for soft drinks in the first half despite “disappointing early summer weather”, which helped offset weakness in its cocktails unit.

Total revenue rose 5.2 per cent to £221.3m in the six months to July 27, helped by a 7 per cent rise in the Irn-Bru maker’s soft drinks business on the back of higher prices and volumes.

But a fall in sales of canned cocktails contributed to a 10.4 per cent drop in profits, to £24.9m.

The Scottish firm said the drop in profitability was mainly due to at unique costs related to the closing of the Barr Direct delivery operation and the integration of the Boost energy drink.

The increase in cocktail sales over the period came despite a slight decline in volume in the overall UK soft drinks market, which was “partly as a result of the disappointing early summer weather,” the group said.

AG Barr added that its Rubicon and Irn-Bru brands grew driven by positive trade associated with its Euro 2024 marketing campaign.

Its strong performance in the soft drinks trade was able to offset lower sales of its Funkin pre-mixed cocktail brand, which faced pressure in the hospitality sector.

Funkin’s sales fell 9.4 percent as “nightclubs” were particularly hard hit by weak consumer demand.

The company reiterated its objectives for the year, although it stressed that it remains “conscious of the current pressure on consumers.”

Euan Sutherland, chief executive of AG Barr, said: “We anticipate a strong second half performance from our four core brands (Irn-Bru, Rubicon, Boost and Funkin) in particular, with current commercial momentum supported by further marketing and innovation activity.”

This was only Sutherland’s second business update since becoming CEO in May.

Sutherland, a veteran of the consumer goods industry, was most recently chief executive of over-50s insurance and holiday group Saga and previously held the top job at fashion retailer Superdry and The Co-op Group.

Following the business update, AG Barr shares fell 4.38 percent to 633 pence in early afternoon trading on Tuesday.