AG Barr has grown sales ahead of the wider soft drinks market after fixing supply chain issues that held the Irn-Bru maker back earlier in the summer.
Revenues increased 8.5% to £247.4m in the 26 weeks to 1 August as core brands continued to grow and newly completed acquisitions of Fentimans and Frobishers contributed to the group.
AG Barr said successful rebrandings and new product launches helped it outperform the rest of the market in the first half. It added encouraging momentum had continued into the second half after the supply chain problems hampering stock availability were resolved.
The issues experienced in the second quarter were estimated to have knocked £10m off AG Barr’s sales for the half.
Operating margins of 15% were maintained in the period, supporting a 2.6% bump for adjusted pre-tax profits to £36.1m. However, statutory pre-tax figures fell 3.7% after the one-off costs associated with integrating Fentimans were taken into account.
“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,” CEO Euan Sutherland said.
“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.”
He added the group remained confident in the “significant opportunities” for the business and its 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. We will continue to focus on delivering above-market growth and creating sustainable long-term value for our shareholders.”
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