Trading Update

Barr(A.G.) PLC

28 January 2025

 

IMMEDIATE RELEASE                                                                                           28 January 2025

A.G. BARR p.l.c

Trading Update

 Sustained revenue growth and double digit profit growth

A.G. BARR p.l.c., the multi-beverage business with a portfolio of market-leading UK brands including IRN-BRU, Rubicon, Boost and FUNKIN, today announces a trading update for the full year ended 25 January 2025 (2024/25).

Revenue in 2024/25 is expected to be c.£420m (2023/24: £400m), representing c.5% year-on-year growth.

Full year adjusted operating margin is expected to show strong improvement to c.13.5% (2023/24:12.3%), helping to drive double digit profit¹ growth.

Highlights

●    Soft Drinks:  All three core soft drinks brands - IRN-BRU, Rubicon and Boost - performed strongly.  Rubicon was the stand-out performer, achieving another year of double digit revenue growth.  IRN-BRU also delivered strong revenue growth and is now one of the top five carbonates in the UK.  The Boost strategy, to focus on value over volume and synergy benefits, gained momentum in H2 with a step up in profitability.  The brand is now fully integrated into our commercial operation and the insourcing of manufacturing remains on track.

●     FUNKIN:  FUNKIN's ready-to-drink business continued to grow at pace through retail distribution gains and innovation.  This went some way to mitigate on-going challenges within the on-premise market.

●     Strategic Programme:  We have successfully completed the projects to strengthen our convenience channel route to market and integrate Boost into our Soft Drinks business.  These projects deliver significant commercial and operational synergies.  As previously advised, they give rise to a one-off cost of c.£5m in the 2024/25 financial year, which will be treated as an adjusting item.

●     Capital Investment:  The multi-year supply chain investment programme continues on plan, supporting brand growth, efficiency improvements and synergy benefits.  Overall capital spend in the year of c.£19m included a new small format PET line and an upgraded large format PET line at our Cumbernauld site, providing increased capacity and capability.

●    Balance Sheet & Cash Flow:  We remain a highly cash generative business, ending the year with more than £60m of net cash (2023/24:  £53.6m).

●    People:  Our talent development continues with the roll-out of a refreshed employee development programme and we are pleased to have welcomed a new Chief Commercial Officer, Dino Labbate, who joined in January 2025.

Euan Sutherland, Chief Executive, commented:

"A.G. BARR is in line to deliver another year of strong top line growth, margin improvement and cash generation.  These headline metrics highlight excellent progress towards our long-term financial goals.  We have sustained brand momentum despite the well trailed wider market pressures, and continue to make good progress towards our margin target.

We are committed to consistent long-term revenue growth and have confidence in further margin improvement as per our previous guidance.  Our expectations for 2025/26 are unchanged and in line with market expectations²."

Future Events

Full year results for 2024/25 year will be reported on 25 March 2025.  In addition, the business plans to hold analyst and investor visits to its Cumbernauld and Milton Keynes sites in the spring and a Capital Markets event in June.

Proposed analyst and investor factory and market visit dates are as follows:

Cumbernauld 23 April 2025

Milton Keynes 15 May 2025

Notes

¹ - adjusted profit before tax

² - Analyst consensus:

●    FY 2024/25:  revenue £420.1m; adjusted PBT £57.4m; adjusted operating margin 13.4%

●    FY 2025/26:  revenue £439.4m; adjusted PBT £65.0m; adjusted operating margin 14.5%

Note:  This is based on estimates of analysts who have updated forecasts over the past 6 months

For more information, please contact :

A.G. BARR                                                                                                 Instinctif Partners

0330 390 3900                                                                                         020 7457 2010/05

Euan Sutherland Chief Executive                                                          Justine Warren

Stuart Lorimer, Finance Director                                                           Matthew Smallwood

                                                                                                                    Hannah Scott

 

END