AG Barr toasts higher profits in ‘strong’ first half
The Scottish group reported pre-tax profits up 12.6% to £27.8 million in the six months to July 30.
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Your support makes all the difference.Irn-Bru maker AG Barr has notched up a hike in half-year profits as sales shrugged off soggy summer weather thanks to strong demand and price hikes.
The Scottish group hailed a “strong” first half, with pre-tax profits up 12.6% to £27.8 million in the six months to July 30, up 6.7% on an underlying basis to £27 million.
Like-for-like sales rose 10.4%, which it said was boosted as its cocktail mixes proved a popular tipple, while demand was also robust for its soft drink portfolio, including Irn-Bru and Rubicon.
It said price hikes also helped drive total revenue growth – up 33.2% to £210.4 million – which comes amid “sustained price inflation” in the wider soft drinks market.
We have made significant financial and strategic progress in the first half and have exciting plans in place for the balance of the year to sustain our growth momentum
But unlike the wider market, AG Barr said it also saw an increase in sales by volume, as it reined in price hikes.
“We chose not to pass on the full impact of cost inflation to customers in order to remain focused on offering consumers great value, affordable brands in an uncertain and challenging economic environment,” it said.
The Cumbernauld-based group said that despite wet weather in the peak trading months of July and August, it remains on track for its recently hiked full-year outlook.
The results come after long-standing chief executive Roger White announced last month that he was set to retire after 21 years.
Mr White will step down as chief executive by August next year.
Mr White said: “We have made significant financial and strategic progress in the first half and have exciting plans in place for the balance of the year to sustain our growth momentum.
“We remain confident in delivering a full-year profit performance in line with our recently increased market expectations and are well positioned to deliver strong shareholder returns for the long term.”
The group is gearing up for a raft of new brand launches over its second half, including the roll-out of its new energy drink, PWR-BRU, which was unveiled in August.