A.G. Barr, the owner of IRN-BRU and Rubicon, has kept its full-year revenue and profit growth expectations unchanged after delivering robust performance in its first half.
In a brief update statement covering the half year to 26 July, the company said that it expects revenue to increase by 3% to approximately £228m, following increased trading momentum as the period progressed, with several “record volume” weeks in the second quarter.
A.G. Barr’s Boost brand delivered double-digit growth, while IRN-BRU and Rubicon were flat in the half but saw stronger performance in the second quarter.
The group’s FUNKIN brand saw continued off-trade growth, partly mitigating challenges in on-trade, with the overall trend improving during the first half and positive in the second quarter.
A.G. Barr expects its adjusted operating margin for the first half to be ahead of last year at around 15.0%. The company attributed this growth to improved manufacturing efficiencies, ongoing benefits from strategic business improvement initiatives, and disciplined cost management initiatives.
Looking ahead, the beverage firm stated that it was confident that it would experience strong revenue growth in the second half.
Euan Sutherland, Chief Executive Officer, commented: “We are pleased to report continued revenue growth and strong profit growth in the first half of the financial year. Trading improved during H1 and we enter H2 with strong momentum and continued progress on margin improvement as our strategic initiatives continue to deliver.”
Meanwhile, it was confirmed yesterday that A.G. Barr has sold its Strathmore brand to Ty Nant, a fast-growing premium bottled water company based in Wales.
The company revealed in April that it was looking to sell Strathmore, just one month after announcing it was scrapping the brand completely.
Strathmore and its associated Forfar production site have now been sold Ty Nant for an undisclosed sum.
A.G. Barr noted the disposal would negatively impact revenue in the short term, but not profit.
“This is a brand with a deep legacy and a loyal following, and we are honoured to be entrusted with its next chapter,” said Raminder Sidhu, Chairman and Director at Ty Nant.
“At the heart of Strathmore’s success is the incredible team in Forfar. Their professionalism, passion and care are a true testament to the strength of the brand and the business. We’re proud to welcome them into the Ty Nant family and excited to invest further in their future.”
Earlier this month, A.G. Barr acquired a majority stake in Innate-Essence, a functional beverage manufacturing business that makes brands such as The Turmeric Co. and Raw Hydrate.
