AG Barr’s profits surged 20% in the first half of the year off the back of rising prices and better operating margin.
Revenue increased by 3% to £228.1m in the 26 weeks to 26 July, driven by growth in its soft drinks business, where Boost was the standout performer.
The rise was largely due to price hikes in the first few months of the year, which temporarily affected volumes. AG Barr said it recorded a number of record-breaking revenue weeks towards the end of the half as momentum built.
It helped push up pre-tax profits to £35.1m, helped by new manufacturing efficiencies, strategic business initiatives, and disciplined cost management, the company said.
“Our soft drinks portfolio performed well in H1 and we expect continued growth in H2 underpinned by increased marketing activity and new product innovation,” said CEO Euan Sutherland.
“Our expectations for the full year 2025/26 are unchanged, and we remain confident in our strategy and ability to deliver sustainable, profitable growth over the long term.”
Boost saw “double-digit” revenue growth following recent brand changes that primarily drove a strong performance in wholesale. But while it is trying to expand Boost into retailers, “this opportunity continues to be ahead of us”.
Elsewhere in its soft drinks, Rubicon delivered “a more modest revenue increase” in the first half of the year after several years of double-digit growth, while Irn-Bru sales were in line with last year.
Cocktails revenue declined by 5.2% versus last year, although sales picked up in the second quarter due to new product launches.
Anubhav Malhotra, an analyst at Panmure Liberum, said ”AG Barr has significant growth opportunities by way of distribution, innovation, pack formats and portfolio development, which should strengthen its positioning as a reliable profit compounder.”
The company said the expansion of its Cumbernauld factory remained on track, with the final phase being the replacement of the site’s can line by early 2026.
In July, AG Barr bought a 50.1% stake in Innate-Essence, the parent company of The Turmeric Co, launched by ex-footballer Thomas ‘Hal’ Robson-Kanu.
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