A.G. Barr, the owner of brands such as IRN-BRU, Rubicon, and Boost, has beaten its own guidance with a 16.1% jump in full-year profits after outperforming the wider soft drinks market.
The company reported an adjusted pre-tax profit of £50.5m over the 12 months to 28 January, ahead of the expected £49.5m.
Adjusted operating margins fell by 130 basis points to 12.3%, reflecting the dilution from acquisitions of brands Boost energy drinks and MOMA oat milk during the year. However, the company said the production in-sourcing of Boost and Rio, also acquired last year, should help margins improve.
Acquisitions helped drive revenues up 25.9% to £400.0m. They were up 8% on a like-for-like basis, helped by strong revenue and volume growth across its soft drinks portfolio, with a standout performance from its Rubicon brand.
Roger White, who is due to step down from the Chief Executive role next month, commented: “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.”
White will replaced by former Co-op boss Euan Sutherland, who will start on 1 May.
Earlier this month, A.G. Barr revealed that it is planning to cut 195 jobs as part of a proposed business reorganisation that will result in the closure of some of its sites.
