AG Barr, a leading soft drinks manufacturer, has reported impressive financial results for the first half of the year.
- The company’s adjusted pre-tax profit increased by 8.5% to £29.3 million, while sales rose by 5.2% to £221.3 million.
- Rubicon emerged as a ‘stand out performer’ with double-digit growth in both volume and value.
- AG Barr’s cocktail division also performed well, with ready-to-drink products in the take-home market growing by 9.1%.
- Despite challenges, AG Barr remains optimistic about continued growth, supported by strategic investments and marketing initiatives.
AG Barr, a prominent player in the soft drinks industry, has announced a notable increase in its financial performance for the first half of the year. The company’s adjusted pre-tax profit rose by 8.5% to £29.3 million, a growth attributed largely to its thriving soft drinks division. Sales in this sector increased by 5.2%, reaching £221.3 million, with Rubicon and Irn-Bru both showing gains in volume and pricing.
The standout performer for AG Barr was Rubicon, achieving double-digit growth in terms of volume and value. This remarkable performance underscores Rubicon’s significant contribution to the company’s overall sales momentum. Meanwhile, Irn-Bru also witnessed positive metrics, reinforcing AG Barr’s strong market positioning in the soft drinks arena.
In its foray into the cocktail market, AG Barr’s ready-to-drink products experienced a growth of 9.1% in the take-home segment. This rate of growth far exceeded the overall market pace of 2.7%, indicating the company’s competitive edge in this space. Nevertheless, the Funkin brand faced a downturn, with sales declining by 9.4% due to ongoing weak consumer demand within the on-trade channel.
The firm’s Boost energy drink brand suffered setbacks, prompting a focus on improving margins, profit recovery, and the insourcing of production, aligning with AG Barr’s strategic objectives. Despite these challenges, the company is confident in its ability to achieve growth, supported by marketing and promotional efforts poised to bolster performance in subsequent quarters.
Chief Executive Euan Sutherland expressed his satisfaction with AG Barr’s progress, highlighting the firm’s potential for tangible growth opportunities. He reaffirmed the company’s commitment to strengthening its supply chain to augment capacity and enhance service resilience. Looking ahead, AG Barr anticipates a robust performance in the second half of the year from its core brands, supported by ongoing marketing and innovation strategies.
AG Barr remains confident in achieving sustained growth through strategic investments and market expansions.
