Irn-Bru maker A.G. Barr revealed yesterday that it expects its half-year revenue to be around 5% higher than prior-year levels, supported by soft drinks growth of around 7%.
In a brief trading update ahead of its interim results in September, the group said its soft drinks performance had been led by its Rubicon brand, where marketing acitvity and further distribution gains drove double-digit revenue growth. Meanwhile, revenue from its IRN-BRU brand was up through a combination of volume and value growth and continued market share gains in England.
A.G. Barr noted that the focus for the Boost brand it acquired last year remained on margin building and insourcing the operation.
Meanwhile, the group’s FUNKIN ready-to-drink (RTD) business “continued to grow at pace” in the retail channel. However, the company said its strong off-trade growth was impacted by short-term issues with third-party can production and the ongoing challenges in the hospitality sector, where late-night venues remain particularly affected.
A.G. Barr concluded: “The half year trading performance is in line with our expectations. We remain committed to improving our profit margins which, combined with the forecast revenue growth, will lead to positive earnings momentum for H2 and beyond. The outlook for the full year remains unchanged and we are on track to meet FY expectations.”
