Irn-Bru manufacturer AG Barr posted strong interim results as it confirmed plans to increase its presence in the healthy drinks market.
It said its product development is “aligned to emerging consumer trends such as healthy hydration and wellbeing, underpinning our long-term growth ambitions”.
This follows the acquisition in July of a 50.1% stake in “functional beverage” Innate-Essence which includes The Turmeric Co and Raw Hydrate brands.
Cumbernauld-based AG Barr saw revenue for the 26 weeks to 26 July increase by 3.1% to £228.1m driven by a double-digit growth in Boost. It recorded a number of record-breaking revenue weeks towards the end of the period.
Adjusted profit before tax rose by 20.1% to £35.2m, and the adjusted operating margin increased by 200 bps to 15.%.
The interim dividend was raised by 11% to 3.44 pence per share. Full-year profit expectations have been reconfirmed.
Euan Sutherland, chief executive, commented: “I am pleased to report strong first half results that reflect continued delivery against our strategic priorities and positive momentum across the business. We are making good progress putting in place the building blocks of long-term growth.
“We are investing in our brands, operations and people to build a stronger, scalable, more profitable business.
“Our Soft Drinks portfolio performed well in H1 and we expect continued growth in H2 underpinned by increased marketing activity and new product innovation. We also continue to diversify our portfolio into high growth segments, with our recent expansion into the functional beverages space.
“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.”
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