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Sales at AG Barr have increased by more than £10m in the first half after a “highly effective” marketing campaign during the Euros football tournament in the summer boosted the popularity of Irn-Bru.
The group’s revenues in the 26 weeks to 27 July rose 5.2% year on year to £221.3m as both Irn-Bru and Rubicon registered volume gains as well as price hikes.
It helped the soft drinks side of the business increase sales 7% to £194.6m in the half, with Rubicon highlighted as the “stand-out performer” thanks to double-digit growth.
However, the growth was offset by a 9.4% slump in sales to £21.1m of the Funkin cocktail brand, which was hit by the challenges facing late-night venues as the on-trade continues to struggle with weak consumer demand.
The Moma oats business, acquired in 2021, gained further distribution and increased sales 7.7% to £5.6m in the half.
Adjusted pre-tax profits jumped 8.5% to £29.3m, but one-off costs of £4.4m related to the closure of Barr Direct and the integration of Boost, which AG Barr acquired in 2022, led to the bottom line falling 10.4% to £24.9m.
CEO Euan Sutherland, who took over from the retiring Roger White in May, said his first few months with AG Barr had further cemented his view that it was “an excellent business with exciting, tangible and deliverable growth opportunities”.
“I am pleased to report a strong set of first half results. The business has delivered both revenue and profit growth as well as good progress on our key strategic margin rebuild programme,” he added.
“We anticipate a strong H2 performance from our four core brands - Irun-Bru, Rubicon, Boost and Funkin - in particular, with current trading momentum underpinned by further marketing and innovation activities.
“Guidance on 2024/25 revenue and operating margin is unchanged. We remain confident of continued, sustainable growth over the long term, in line with our strategic ambitions.”
Morning update
Cake Box has revealed a collaboration with Nutella to launch a lineup of five new products for the UK market.
The Nutella Collection will be available in the fresh cream celebration cakes retailer’s stores nationwide.
CEO Sukh Chamdal said: “This collaboration aligns perfectly with our mission to deliver exceptional quality and delicious taste for our customers. We are confident that these new products will inspire and delight our customers as they celebrate life’s special moments.”
The FTSE 100 opend up 0.5% to 8,302.53pts this morning.
Shares in AG Barr increased by 0.7% to 664.7p, while Cake Box is up 0.4% to 170.7p.
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