A.G. Barr, the owner of the IRN-BRU and Rubicon soft drink ranges, delivered revenue and volume growth during its first-half period, reflecting brand momentum, and the benefit of higher prices and good weather in June.
In a brief trading update for the 26 weeks ended 30 July, the Scotland-based firm revealed that its revenue had risen by around 33% to £210m. However, excluding the contribution from the Boost Drinks business it acquired in December last year, the increase was 10%.
Its Barr Soft Drinks and Boost Drinks units were said to have seen strong trading, driven by volume growth, pricing and mix, alongside “effective sales execution and successful consumer marketing activity”.
In its FUNKIN Cocktails division, revenue growth was driven by distribution gains, increased consumer marketing investment and product innovation, particularly in the retail channel.
Meanwhile, its MOMA Foods business benefitted from brand and consumer marketing investment, with “significant” growth as oat milk continued to outperform other plant-based milk categories.
Looking ahead, A.G. Barr stated that the delay to Scotland’s deposit return scheme (DRS) had resulted in a more “stable and certain consumer environment”. It noted that this would enable it to accelerate its innovation plans with a number of brand launches planned for the second half of the year.
As previously stated, the company expects its full-year operating margin to be impacted by “persistent” cost inflation alongside the impact of absorbing the lower margin Boost business. However, A.G. Barr said today that it expects its annual profit performance to be marginally above the top end of analysts’ expectations.
Roger White, who today announced he would be retiring from the Chief Executive role after over 20 years, commented: “Our medium-term plan to rebuild the group’s operating profit margin is progressing well across a range of activities, including supply chain optimisation, cost management and portfolio development.
“We have strong brand plans in place across the business for the balance of the year to sustain our growth momentum and we remain confident in the group’s long-term growth strategy”.
The company stated that White would step down and leave the company at a mutually agreed date in the next 12 months. It has commenced a succession process, including an external search.
Mark Allen, A.G. Barr’s Chairman, commented: “Roger has served the shareholders, Board, wider business and industry for over 21 years – this makes him one of the longest serving CEO’s in the UK public market. He has supported the transformation of the business from a regional soft drinks business into a highly successful multi-beverage, branded company that has delivered significant value to shareholders, stakeholders and employees.
“A.G. Barr has a strong culture and momentum and is strategically well placed to continue to deliver for the long term.”
