Irn Bru maker AG Barr profit soar thanks to demand for Rubicon drinks and booming porridge market
Higher porridge and Rubicon sales helped AG Barr record a 25.9 per cent jump in revenue last year to £400m.
The company, which is best known for making Irn Bru, reported profit growth of 15 per cent off the back of these numbers. Profit before tax hit £51.3m.
As a result, the board has hiked its dividend by over 14 per cent to 15.0p.
The drinks maker said its Rubicon brand had an excellent year, with sales up 15 per cent, driven by growth across the full brand portfolio.
“Rubicon’s exotic fruit proposition and its vibrant and energetic brand positioning are proving a winning combination, with consumers keen to experience flavours and products that differ from the norm,” it said.
Across the period, the total UK soft drinks market increased in value by 8.3 per cent while volumes declined by 2.9 per cent.
Away from soft drinks, the business said its porridge and alternative milk categories also performed well, driven by demand for oat milk.
The value of the total porridge market grew 13% versus the prior year and AG Barr’s recently acquired MOMA’s porridge pot range grew ahead of the market, up 20% in value driven by, “strong sales momentum and distribution gains in large multiple retailers.”
Roger White, chief executive of the firm, said: “With our business in a strong financial position, and our portfolio of differentiated brands poised for further growth.
“I have every confidence that our proven strategy, our results-driven teams and our well-invested asset base will continue to support long-term growth and value creation.”
Today’s announcement comes just weeks after the firm said 195 jobs could be at risk due to the planned closure of three UK sites.
Locations in Moston, Wednesbury, Dagenham and Leeds are all at risk as part of a business reorganisation.
AG Barr, said: “The proposals are subject to full and proper consultation with impacted employees over the coming months. The company will do everything possible to support those affected throughout the process.”