Irn-Bru Maker A.G. Barr Reports 'Strong' First Half Performance
A.G. Barr has delivered a strong first half performance and recommencement of dividends, its latest financial results show.
According to the soft drinks firms interim results for the 27 weeks to 1 August, the record first half profit reflects positive underlying volume momentum.
The company, best known for Scottish fizzy drink Irn-Bru, said that its full year operating margin is expected to be slightly ahead of the prior full year.
The group said that profit before tax at the business stood at €27.8 million (£23.7 million) for the period, a 42.8% increase on the previous half-year.
Revenue was up by 19.5% to €158.5 million (£135.3 million) in the period, while the group saw a 260-basis-point gain in operating margin, to 17.7%, in line with its previous forecast.
Roger White, chief executive, commented, "AG Barr is a growth-focused business operating in resilient and growing market categories, with dynamic brands, great people and a strong financial position.
"Our positive first half performance reflects these fundamentals as well as the encouraging performance of recent innovation launches in both soft drinks and cocktails," he said.
"We remain on track to deliver strong full year profit performance, slightly ahead of our 2019/20 pre-Covid level," White added.
Rubicon RAW Energy
In May this year, A.G. Barr said its new launches, particularly Rubicon RAW Energy, had been performing well, and demand for its cocktail brand Funkin remained firm after a solid 2020, when people were drinking more at home.
For the 27 weeks to 1 August, the company said trading has been strong across both its business units, Barr Soft Drinks and Funkin.
The company said that this performance has been driven by a combination of brand-led initiatives and market factors, some long-term and structural, and others more one-off, resulting in an unusually high profit performance in the first half.