AB Barr backs full-year expectations as interim profits, revenue rise

(Sharecast News) - Irn-Bru maker AG Barr backed its full-year expectations on Tuesday as it posted a rise in interim profit and revenue, with growth ahead of the soft drinks market, driven by core brand performance. In the 26 weeks to 1 August, adjusted pre-tax profit ticked up 2.6% to £36.1m on revenue of £247.4m, up 8.5% on the same period a year earlier. Barr said the rise in revenue reflects continued core brand growth and the contribution from recent acquisitions Fentimans and Frobishers.

The adjusted operating margin was maintained at 15.0%, while statutory pre-tax profit dipped 3.7%, mainly due to one-off costs associated with integrating Fentimans.

AG Barr said it was on track to meet full-year market expectations for adjusted pre-tax profit of £71.5m.

Chief executive Euan Sutherland said: "We made strong progress against our strategic priorities during the first half of the year, with continued momentum across our brands and strong execution against our strategic growth drivers. Despite supply constraints impacting customer service in the peak summer months, our core brand portfolio performed well in the market, supported by successful rebrands, innovation and marketing. Our recent acquisitions have expanded our addressable market and investment in our manufacturing capabilities continues to significantly strengthen the business for the long term.

"Looking ahead, we remain confident in the significant opportunities for the business and our ability to build on this momentum in the second half. With our acquisitions now fully integrated and our investment programme progressing well, we remain on track to deliver full year performance in line with market expectations."

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