AG Barr: Profits fizz at Irn Bru maker as recent takeovers lift revenues
AG Barr, the maker of Irn Bru, today reported a 12.6 per cent leap in profit to £27.8m during the first half of the year as the carbonated drinks maker was lifted by recent takeovers.
The Scottish group, which also makes Rubicon, reported a 33 per cent increase in first-half year sales, driven by its acquisitions of energy drinks company Boost and alternative milk maker Moma last December.
The FTSE 250 firm said it is continuing to trade in line with market expectations.
Chief executive Roger White – who is set to step down after nearly two decades in charge – said: “We have made significant financial and strategic progress in the first half and have exciting plans in place for the balance of the year to sustain our growth momentum.”
“We chose not to pass on the full impact of cost inflation to customers in order to remain focused on offering consumers great value, affordable brands in an uncertain and challenging economic environment,” he added.
Russ Mould, investment director for AJ Bell, said the firm’s results were “strong” and enable it to stick to its modest increase to its full year guidance.
“If those consensus forecasts are correct then AG Barr will grow its profits for the third straight year in the 12 months to January 2024,” he said.
“The trade-off may well be that the company sacrifices some operating margin to achieve this, but shareholders could still be pleased if the outcome is a resumption of sustained growth, especially after the challenges that have faced the firm over the past decade or so,” he said.