REG - Barr(A.G.) PLC - Final Results
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RNS Number : 7059Y Barr(A.G.) PLC 31 March 2026
IMMEDIATE RELEASE
31 March 2026
A.G. BARR p.l.c.
("A.G. BARR" or "the Company")
Final Results
Strong financial delivery and strategic progress
Entered the new financial year with good momentum
A.G. BARR, the multi-beverage business with a broad portfolio of
market-leading UK brands including IRN-BRU, Rubicon and Boost, today announces
its Final Results for the financial period ended 31 January 2026(1)
('FY25/26').
Overview
FY25/26 was a period of strong financial delivery and strategic progress. The
Company successfully delivered across each of its three key financial metrics
of revenue growth, operating margin and return on capital employed. Execution
was accelerated across a range of strategic growth drivers marking a
step-change in the corporate ambition and unlocking significant growth
opportunities in:
● Brand Innovation: Accelerating our new product development
pipeline.
● Channel Expansion: Broadening our route-to-market initiatives.
● Operational Excellence: Investing in capabilities to drive scale
and efficiency.
● Strategic M&A: Expanding our addressable market.
Financial Summary
2025/26 2024/25 Increase / (Decrease)
Revenue £437.3m £420.4m 4.0%
Adjusted Profit Before Tax* £65.8m £58.5m 12.5%
Adjusted Operating Margin* 14.8% 13.6% 120bps
Adjusted Return on Capital Employed* 20.4% 20.8% (40bps)
Adjusted EPS (basic pence/share)* 44.24p 39.77p 11.2%
Statutory Profit Before Tax £62.6m £53.2m 17.7%
Statutory Operating Margin 14.1% 12.3% 180bps
Statutory Return on Capital Employed* 19.4% 18.9% 50bps
Statutory EPS (basic pence/share) 42.27p 35.81p 18.0%
Net cash at bank* £41.6m £63.9m (34.9%)
Full year dividend* 18.71p 16.86p 11.0%
(1)Year-on-year metrics reflect the full year 2025/26 53 weeks compared
against 2024/25 52 weeks.
Highlights FY25/26
● Revenue increased by 4.0% to £437.3m, being value-led and
reflecting pleasing performances and growing momentum in the core soft drinks
brands of IRN-BRU, Rubicon and Boost.
● Adjusted operating margin* increased by 120bps to 14.8%, led by
efficiency and strong cost discipline, with adjusted profit before tax* of
£65.8m, up 12.5% on the prior year.
● Adjusted return on capital employed (ROCE)* of 20.4% maintained
within target range despite significant up-front investment across brand and
capex to support future growth.
● Strong growth across key statutory measures, in particular profit
before tax up £9.4m (17.7%) year-on-year.
● Cash generated by operations of £64.9m, up 12.7% versus the prior
year, supporting both the growth strategy and a further increase in the
dividend. Net cash at bank* of £41.6m following outflows related to
acquisitions of Frobishers and Innate-Essence during the period.
● Final dividend of 15.27p per share, bringing total FY25/26
dividend to 18.71p per share, an increase of 11.0% on prior year.
Outlook & Momentum
We entered FY26/27 with good momentum and will continue to demonstrate
tangible progress against our strategic objectives. Our core soft drinks
portfolio will be supported by expanded distribution, targeted brand refreshes
and multiple new product launches. The integration of recent acquisitions -
Frobishers Juices Ltd and Fentimans Ltd (post period end) - is well underway
and progressing to plan, leaving us well positioned to realise targeted
operational efficiencies from H2 and in the coming years.
Key Financial Metrics
The Company aims to consistently deliver on the following key financial
metrics:
· Revenue growth ≥ 4% per annum, representing above-market growth;
· Operating margin within 14-16% range; and
· ROCE within the range of 19-21%, with individual year returns
influenced by M&A and operational investment to support growth.
Euan Sutherland, Chief Executive Officer, commented:
"This was a year of significant strategic progress in which we also delivered
on our targeted financial metrics. We have strengthened the foundations of
the business and stepped up our investment in brand development, commercial
capability and our operations to ensure we can consistently sustain high
levels of performance. These actions, supplemented by a more meaningful
M&A strategy, support our ambition to deliver our target of sustainable,
consistent top and bottom line growth.
We entered FY26/27 with good momentum and clear priorities, and expect to
deliver a year of low double digit percentage revenue growth supported by our
recent acquisitions. Our strategy aims to deliver above-market growth rates
and realise our ambition of doubling the size of the business. Importantly, we
are pursuing this ambition without changing our core business model, and with
a continued disciplined focus on margin, ROCE and shareholder returns."
Presentation for analysts and investors
A presentation for analysts and registered professional investors is being
held today at 10.00am BST at the offices of Investec Bank in London. To
enquire about attending the presentation in-person or virtually, please email
ir@agbarr.co.uk (mailto:ir@agbarr.co.uk) (for investors) and
agbarr@mhpgroup.com (mailto:agbarr@mhpgroup.com) (for analysts).
A.G. BARR will also be hosting a presentation via the Investor Meet Company
platform tomorrow (Wednesday, 1 April 2026) at 4.15pm BST. The presentation is
open to all existing and potential investors and will include a live Q&A
session. Investors can sign up to the presentation and Investor Meet Company
platform for free using this link:
https://www.investormeetcompany.com/barr-ag-plc/register-investor
(https://www.investormeetcompany.com/barr-ag-plc/register-investor)
For further information, please contact:
A.G. BARR
0330 390 3900
ir@agbarr.co.uk (mailto:ir@agbarr.co.uk)
Euan Sutherland, Chief Executive Officer
Stuart Lorimer, Chief Finance and Operating Officer
Ewan Dytch, Corporate Finance Director
MHP GROUP
07801 894 577
agbarr@mhpgroup.com (mailto:agbarr@mhpgroup.com)
Oliver Hughes
Rachel Farrington
Catherine Chapman
(
)
*Items marked with an asterisk are Alternate Performance Measures. These are
non-GAAP measures used by management to assess the Company's operating
performance and to inform decisions. Definitions and relevant reconciliations
are provided later in this announcement.
About A.G. BARR:
A.G. BARR (LSE: BAG, FTSE250) is a UK-based branded multi-beverage business
with a diverse and differentiated portfolio of 16 brands, including IRN-BRU,
Rubicon and Boost. Established 150 years ago in Scotland, the Company now
operates across the UK, and with export markets throughout the world. A.G.
BARR is committed to being a brand owner and builder, with the ambition of
doubling the business through a flywheel of consistent growth.
https://www.agbarr.co.uk/ (https://www.agbarr.co.uk/)
Chair Statement
Overview
FY25/26 has been a year of strong strategic progress and financial delivery
for AG Barr. The Board is pleased with the business' performance and results
in the year and are confident of delivering further progress, in line with our
growth plans, in FY26/27 and beyond.
Market context & strategic progress
Across the year the soft drinks market once again demonstrated its resilience.
It remains a large, growing category with helpful defensive characteristics as
a low-cost everyday purchase for consumers - even during periods of economic
uncertainty. At the same time, consumer preferences are evolving and our
operating environment continues to change, creating both opportunities and
challenges for the Group. Navigating input cost volatility, highly competitive
markets and regulatory developments requires careful oversight and disciplined
execution.
The Board believes AG Barr is well positioned in the market with defined
strategic growth drivers, operating excellence and a track record of financial
discipline. The Group combines an increasingly diversified portfolio of
market-leading UK brands, strong cash generation, a robust balance sheet and
an integrated operating model with control over supply chain and customer
service. We continue to build on the strengths of our established business
model.
During the year, the business increased levels of commercial and operational
investment to drive growth. We carefully considered the impact of pricing
strategy across our brands, and actions were taken to strengthen our brand
equity and ensure margin discipline. While these decisions had a short-term
negative volume impact, they were taken with a clear focus on delivering
sustainable, profitable growth over the long-term.
In terms of brands and the customer proposition, the Board regularly reviews
brand performance metrics, the innovation pipeline and consumer trends to
ensure that the portfolio remains aligned to structural growth opportunities.
The Board also regularly evaluates M&A opportunities, which this year
included expansion into the functional healthy hydration and premium
socialising soft drinks segments through three acquisitions.
Our Capital Markets Day in June 2025 was an important milestone in
articulating our refreshed strategy and ambition. We are ambitious for
growth and are confident in both the market opportunity and in the Group's
capabilities to deliver our strategy. We are committed to providing clear
and transparent updates on our progress.
Board
Strong governance remains a priority. Dr Rohit Dhawan joined the Board as a
Non-Executive Director during the year, bringing valuable experience and
perspective, particularly with regards to data, AI and digital transformation
across consumer industries. We also announced that Mark Allen OBE stepped
down from the role of Non-Executive Chair due to other increased commitments.
I would like to thank Mark for his contribution during his five years with the
business and wish him every success for the future. The Board has initiated an
independent process to put in place a new Non-Executive Chair, and this is
progressing in line with expectation. I will act as Interim Chair until a
successor has been appointed and Louise Smalley, Non-Executive Director, will
serve as Senior Independent Director during this interim period. The
transition has been well-managed and smooth, and the Board continues to
operate with stability, independence and constructive challenge.
Responsibility
Responsibility and sustainability remain embedded within our governance
framework. The Board oversees progress against our commitments via our
Environmental, Social and Governance (ESG) Board sub-committee. This includes
carbon reduction targets, packaging changes which reduce the impact on the
environment and readiness for regulatory developments. During the year, the
Group enhanced transparency and continued to make measurable progress. We
remain clear that responsible and well-governed businesses are better
positioned to deliver durable, long-term value.
People, culture and values
People and culture are fundamental to our long-term success. The Board
regularly meets colleagues through a range of forums and discusses engagement,
diversity and talent development. It is encouraging to see continued
improvement in engagement scores and progress in diversity metrics, including
female representation in leadership roles. This cultural evolution supports
effective strategy execution and underpins future performance.
Capital allocation and dividend
Disciplined capital allocation is central to our business strategy and
responsibilities to shareholders. We rigorously review investment across brand
development, supply chain optimisation and system infrastructure, ensuring
that capital is deployed in line with strategic priorities and expected
returns. The Board also oversaw M&A activity completed during the year,
assessing strategic fit and integration planning while maintaining financial
flexibility. We are delighted to welcome Innate-Essence, Frobishers and
Fentimans into the AG Barr family.
Reflecting the Group's performance and strong balance sheet, the Board is
recommending a final dividend of 15.27p per share, bringing the total
dividend* for the year to 18.71p, an increase of 11.0% on the prior year
(FY24/25: 16.86p). This is consistent with our dividend policy and
confidence in the Group's long-term prospects.
Looking ahead
AG Barr enters the new financial year with momentum. Considerable work has
been completed over the past year to lay strong foundations for future growth.
The Board expects the coming year to demonstrate further strategic progress,
with clear milestones across innovation, channel expansion, and execution of
our growth strategy through integration of recent acquisitions. We are
investing for the future through our manufacturing sites to improve both
volume capacity and format capability. We are also focused on investing in
talent at all levels of the organisation. The Board is confident in the
Group's ability to deliver growth ahead of the market whilst maintaining
financial discipline and continuing to generate sustainable returns for
shareholders.
On behalf of the Board, I would like to thank our colleagues for their
contribution over the past year, and to thank our customers, suppliers and
shareholders for their continued support. We are proud of the progress made
and are confident in the future of AG Barr.
Susan Barratt
INTERIM CHAIR
Chief Executive Officer's Review
FY25/26 was a year of strong financial delivery and strategic progress for AG
Barr. Across our three key financial metrics - revenue growth, operating
margin and return on capital employed - we delivered our plan and met the
targets we had set out. These are the headline results but what I am most
pleased about is the progress we have made towards our new, key strategic
drivers which offer considerable growth opportunities ahead.
This year's main focus was strengthening the foundations of the business to
support sustainable above market growth and growing shareholder returns. We
stepped up our investment in brand development, commercial capability and our
operations to ensure we can consistently sustain higher levels of performance.
These actions, supplemented by a more meaningful M&A strategy, support our
ambition to consistently deliver our targets of: a minimum 4% revenue growth
per annum; 14-16% operating margin; and ROCE in the range of 19-21% with
movements within this target range influenced by M&A and investment
strategy as we invest to support growth.
Our strategy set out at the Capital Markets Day in June 2025 is ambitious but
grounded in long-standing capabilities. We are building on proven strengths,
not reinventing our business model.
Operating context
The UK soft drinks market, in which the majority of our business is based,
remains large, resilient and in growth. Growth in the market during 2025 was
value driven reflecting inflation and pricing.
Within this environment, we acted decisively to protect long-term value. After
a prolonged period where IRN-BRU and Rubicon were positioned below the optimal
price level on certain key pack formats, we implemented corrective action.
These changes, made in early 2025, temporarily impacted volumes but were
necessary to restore margin discipline and protect brand equity.
Consumer behaviour continues to evolve, with a number of clear shifts
impacting market trends. At the same time, tightening regulation on both sugar
content and advertising are shaping the retail landscape. We have and will
continue to respond to developments in these areas.
Looking ahead, we see substantial growth opportunities for our business. In
particular, functional healthy hydration and premium socialising are expected
to drive incremental growth, underpinned by health and wellness trends and the
moderation in alcohol consumption. These structural drivers align directly
with our innovation focus and recent portfolio expansion through M&A.
Financial performance and value delivery
Financial results in FY25/26(1) were strong. Group revenue increased by 4.0%
to £437.3m, with adjusted profit before tax* of £65.8m, up 12.5% on the
prior year. Adjusted operating margin* increased by 120 bps to 14.8%, led by
efficiency and strong cost discipline, moving us to within our target range.
Adjusted Return on Capital Employed* of 20.4% was well within our target range
despite significant up-front investment across brand and capex to support
future growth.
Adjusted earnings per share* increased by 11.2%, primarily reflecting the
growth in adjusted PBT. Net cash from operating activities of £51.0m
highlights the strength of our cash generation and supports both our
investment programme and dividend growth.
Our results further evidence our long track record of financial discipline and
profitable growth, which we are confident will continue as we move forward.
Brand and portfolio performance
Our brand portfolio strategy remains a key strength and we broadened our
portfolio during the year through two significant acquisitions, as well as one
at the start of FY26/27. Our biggest brand, IRN-BRU, now represents 32% of
Group revenue compared to 43% five years ago, reflecting successful
diversification and expansion.
Our core soft drinks brands, IRN-BRU, Rubicon and Boost remain key to our
growth strategy. Following pricing realignment in H1, and brand development
work in H2, IRN-BRU and Rubicon are both well positioned for FY26/27. Both
brands remain underpenetrated in the UK market and we see significant
opportunity to raise brand awareness as well as expanding distribution and
availability. We are focused on building truly UK-wide brands across the
Group.
Boost delivered strong growth in the year, with revenue up 12% versus the
prior year. This performance benefitted from brand development work undertaken
in FY24/25, which laid the foundations for distribution gains and improved
sales and marketing execution in FY25/26.
Innovation activity has significantly accelerated under our new strategy. We
have recognised increasing consumer demand for new and exciting products and
have therefore expanded the innovation pipeline to be the largest in the
Group's history, with a number of major launches taking place from January
2026 into FY26/27. Contributions from these are expected to build as the year
ahead progresses. Innovation, alongside refreshed marketing strategies and
extending distribution, is central to raising brand awareness and driving
penetration and growth across all brands over the medium-term.
The acquisitions of Innate-Essence, Frobishers and Fentimans over recent
months see us enhancing our presence within the attractive functional
beverages and premium socialising segments and demonstrates more meaningful
M&A for the Group. These acquisitions broaden our addressable market and
enhance exposure to higher-growth categories. Importantly, there is minimal
cannibalisation of the existing portfolio from these acquisitions. With
respect to Fentimans and Frobishers, integration plans are underway and
associated efficiencies are expected to be generated from H2 FY26/27 onwards.
Our focus for the year ahead is on embedding the recent acquisitions into the
Group but we will remain alert to any compelling M&A opportunities that
align with our stated strategy and growth objectives.
Channel performance in the year reflected both opportunity and challenge. We
made good progress with the early stages of our expansion within the grocery
channel, with more progress expected in FY26/27. At the same time, necessary
pricing actions on certain pack formats in H1 FY25/26 created short-term
volume softness in some areas of our Wholesale / Convenience business, which
has now normalised. During the year we strengthened our revenue growth
management capability and this is enabling greater precision in navigating
these dynamics going forward.
Strategy in Action
Our strategy is designed to deliver consistently growing shareholder returns:
combining growth with the right M&A opportunities in order to deliver EPS
and dividend growth aligned with our long-term profit performance. Our
strategic priorities are focused around five growth platforms: More from Core;
Excellence in Sales & Market Execution; Supply Chain Leverage; Innovation
Upweight; and Strategic M&A.
During the year, we undertook considerable foundational work across these five
pillars. We increased brand investment and refreshed marketing strategies
across our biggest brands, and we strengthened our sales team and its
capabilities. We advanced channel expansion initiatives to improve penetration
and geographic coverage, and executed against our M&A strategy by making
three acquisitions which are expected to deliver meaningful accretion over the
medium-term following their integrations and / or scaling.
Operationally, our comprehensive investment programme continued, including
phased capability and capacity expansion to support long-term growth. We
continued to improve our supply chain, leveraging our integrated model to
enhance efficiency, customer service and product quality. The final phase of
our Cumbernauld site manufacturing line refresh programme saw the installation
of a new, high-speed can line in January 2026. We also progressed the early
stages of expanding our Milton Keynes manufacturing capability, with the next
key milestone being the implementation of a second independent can-line which
will be operational from early 2027. These projects require significant up
front investment before returns are generated in subsequent years.
I am pleased with the progress we have made in the starting year of our new
strategic objectives. There are plentiful, significant opportunities ahead and
much more to do to realise our ambitions for the business.
People, culture and capability
The evolution of our culture and capability has been fundamental to our
performance. We introduced new appointments and expanded expertise during the
year, embedding upweighted talent across the business and particularly in our
sales and marketing teams.
Employee engagement improved to 81% (FY24/25: 78%), reflecting increased
clarity of purpose and confidence in our strategy. We also made progress on
diversity metrics, including 43% female representation in leadership roles
(FY24/25: 38%). A stronger performance culture, combined with enhanced
capability, underpins our confidence in delivering our strategy with low
execution risk.
Sustainability and responsibility
We advanced our ESG strategy during the year, increasing both delivery and
transparency. We achieved a 10.5% reduction in Scope 1 and 2 emissions
year-on-year, progressed packaging initiatives and continued our preparatory
work in readiness for regulatory developments, including the introduction of
the Deposit Return Scheme in the UK, legislated to take place in late 2027.
Responsible and efficient operations are fully aligned with our strategic
objective of delivering sustainable shareholder returns.
Capital discipline and balance sheet
Capital allocation remains disciplined and aligned to our strategy. Capital
expenditure of £30.4m focused on supply chain optimisation and systems
modernisation. The increase in our dividend demonstrates ongoing business
growth and our commitment to shareholder returns.
Our balance sheet remains strong, providing flexibility to invest and pursue
targeted M&A, including the post period end acquisition of Fentimans. Our
approach remains consistent: invest in brands, capability and infrastructure
that enhance long-term returns while maintaining financial resilience.
Outlook and priorities for FY26/27
Building on the progress made in FY25/26, we enter FY26/27 with good momentum.
Further milestones are planned for the coming year, including successful
rebranding of IRN-BRU and Rubicon, multiple new launches and progress with
channel expansion initiatives.
Our priorities for FY26/27 are clear: deliver our targeted revenue growth;
penetrate deeper through channel expansion activities; successfully execute
our upweighted innovation pipeline; make further efficiency gains in our
Supply Chain; and integrate and grow recent acquisitions.
We are ambitious. Our strategy aims to deliver above market growth rates and
double the business. Importantly, we are pursuing this ambition without
changing our core business model and with a disciplined focus on margin, ROCE
and shareholder returns.
AG Barr combines a broad and broadening portfolio of market-leading UK brands,
a strong balance sheet, a proven track record of financial discipline and
strong cash generation and a newly introduced strategic ambition that builds
on our long-term expertise. We are excited by our strategy and confident in
our ability to deliver sustainable profitable growth and increasing returns
for shareholders.
Euan Sutherland
CHIEF EXECUTIVE OFFICER
Financial Review
Highlights
FY25/26(1) has been a period characterised by strategic transition,
disciplined commercial execution and financial growth. We have recorded
another year of high-quality financial performance delivering revenue growth
and margin progression while investing in and strengthening our brand
portfolio and continuing our successful multi-year operational expansion
programme.
We have delivered across our three key financial metrics:
● Revenue grew by 4.0% to £437.3m (FY24/25: £420.4m). This
growth was value-led and in line with our commitment of a minimum of 4%
growth. Disciplined pricing action in early 2025 had a negative short term
impact on volumes as we successfully repositioned core brand formats in
advance of brand redesign and upweighted marketing initiatives planned for
2026.
● Adjusted operating margin* increased 120 bps to 14.8%, moving
within our target range of 14 - 16%, on the back of successful operational and
capital improvement initiatives. This enabled adjusted profit before tax* to
improve 12.5% to £65.8m.
● Adjusted Return on Capital Employed* (ROCE) of 20.4% was
maintained at target level of 19-21% despite significant up-front investment
across brand and capex to support future growth.
This strong performance reflects our strategy to build brands, drive
commercial execution and leverage manufacturing operational efficiency. This
value focused framework resulted in adjusted EPS* up 11.2% and supports an
increase in the proposed final dividend to 15.27p/share, up 11.0% on the prior
period final dividend.
During the year we successfully completed two acquisitions: Innate-Essence
in Q2 and Frobishers in Q4. On 2 February 2026, after the financial year end,
we announced the acquisition of Fentimans. All three transactions are aligned
with our strategy to grow both our existing brands and through M&A in
higher growth segments.
Revenue, profit and margin analysis
Our revenue growth follows our 'value over volume' philosophy. In FY25/26 we
successfully executed targeted pricing across our core portfolio to protect
brand equity and implement improved revenue growth management (RGM)
principles.
● Pricing: Total revenue growth of 4.0% was driven by price. Our RGM
initiatives secured price increases ranging from 1-11%, based on a framework
of price elasticity, competitor price points and consumer occasions. This
enabled us to align pricing, promotional plans and customer investment at a
brand, product format and customer level consistent with long term brand
positioning.
● Volume Performance: Overall volume was relatively flat versus the
prior year in a year of price repositioning. As expected, the pricing actions
led to some volume pressure for those brands and formats with the most
significant price increases, with strong volume growth on brands where price
increases were smaller. Volume contributed by the Innate-Essence acquisition
broadly offset the volume loss associated with the Strathmore disposal.
● Cost & Mix: A key theme of this year's performance has been
continued margin improvement. Our adjusted operating margin* expanded by 120
basis points to 14.8%. This was achieved through:
○ Operational Efficiencies: Our multi-year capital and operational
improvement programme continues to generate benefits across service, quality
and costs. Our investment in people, capacity and capabilities has realised
production efficiencies across the supply chain in FY25/26 and these will
continue in FY26/27.
○ Disciplined Cost Management: At an aggregate level, input costs
moderated this year, however significant volatility remains within specific
categories. Headwinds in key commodities (aluminium and soft fruits are both
at record highs) combined with increased regulatory costs were partially
offset by multi-year lows in sugar and a recovery in mango harvests. Labour
and service cost inflation persists but at lower levels than experienced in
the recent past. Improved procurement capabilities and our long standing
commitment to a cost conscious culture secured savings and ensured total costs
were constrained at levels in line with prior year. The current Middle East
conflict is a fast-moving situation, the intensity or duration of which we are
unable to predict. However, at the time of writing, the direct impact on our
business is confined to the current energy cost spikes. We have no revenue
exposure or direct supply chain exposure to the Middle East and good hedge
cover on all key commodities through most of 2026.
○ Overall mix was marginally negative as a result of the significant
growth of the relatively lower margin Boost brand alongside continued
challenges in the higher margin FUNKIN on-trade sector.
Segmental Performance
Our segmental performance demonstrates the resilience of our "Total Beverage"
strategy and highlights our strategic evolution towards a wider, more balanced
portfolio of soft drinks, functional health, and premium socialising:
● Soft Drinks: As the portfolio's cornerstone, Soft Drinks yielded
steady revenue increases. IRN-BRU (32% of Group revenue) revenue grew with
performance strengthening as the year progressed. Following three years of
double-digit expansion, Rubicon moderated to low single-digit revenue gains as
price adjustments and specific channel challenges impacted off-take. Both
flagship brands exited the period with renewed momentum that continues in the
new financial year. Boost emerged as the standout performer in FY25/26,
achieving significant double-digit gains in both energy and sports formats
following the FY24/25 brand redesign. Barr Brands encountered volume pressure
as consumer preferences shifted from large PET formats, where Barr
over-indexes, toward cans. As part of our continued review of the portfolio,
we exited the low-margin water segment through the disposal of Strathmore in
June.
● Cocktail Solutions: Revenue growth in RTD cans continues to be
negated by the persistent headwinds in the on-trade with the consumption of
spirits, in particular cocktails, affected. Overall FUNKIN revenue declined
11%. We are not anticipating on-trade recovery in the near term and are
re-focusing on self-help initiatives that will reposition the brand for both
consumers and customers.
● Other: The "Other" category, comprising MOMA and Innate-Essence
brands, was the fastest-growing component of the portfolio reflecting their
position in higher growth categories. Both MOMA and Innate-Essence achieved
double-digit revenue increases from significant distribution wins and
increasing rate of sale. The growth highlights the successful scaling of these
newer brands as they transition to being profitable contributors, and
demonstrates our expertise in building great brands.
Adjusting Items
To provide a clearer view of our underlying business performance, we report
results on both a reported and an adjusted basis. The Group presents these
measures to the users to enhance their understanding of how the business has
performed within the year, and does not consider them to be more important
than, or superior to, their equivalent IFRS measures. The adjusted basis
excludes specific items, material by their size or incidence, that do not
reflect the Group's underlying business performance. In the period to
January 2026, the Group incurred and separately disclosed a net charge of
£3.2m of pre-tax adjusting items (FY24/25: £5.3m charge). This charge
has been included within operating expenses but has been excluded from
adjusted profit before tax. Adjusting items comprise:
Total charge
Route to market changes: In FY24/25 the business ceased direct to customer £0.5m
deliveries and moved to a field sales model. In line with the treatment of
other closure related costs, the further impairment of the vehicles associated
with this operation has been treated as an adjusting cost (note: impairment is
a non-cash item).
Business Reorganisation: Costs associated with the integration of the FUNKIN £1.3m
and Frobishers businesses into a single AG Barr company.
M&A Activity: Fees and costs associated with the acquisitions of £1.4m
Frobishers, Fentimans and the investment in Innate-Essence.
Total Adjusting Items £3.2m
Costs associated with the integration of Fentimans are expected to be treated
as an adjusting item in FY26/27. The quantum of these is not yet known.
Capital Allocation & Investment Discipline
Capital allocation, a key component of our business strategy, is designed to
drive long-term shareholder value while maintaining the financial flexibility
required to execute our strategic ambitions. We operate a disciplined
hierarchy of capital usage, underpinned by a commitment to maintain a robust
but efficient balance sheet within a framework that will deliver:
● ROCE in the range of 19-21%, with the position within the range
influenced by the timing of both M&A and other investments necessary to
deliver our long-term growth ambition;
● Long term Net Debt / EBITDA ratio of no more than 2.5x;
● M&A that delivers growth and accretive value immediately or
through subsequent integration and scaling;
● Dividend growth aligned with profit performance, with a dividend
cover of at least 2x EPS.
Our capital allocation prioritisation is based on:
● Organic Investment: We prioritise re-investing in our core business to sustain commercial growth and fuel expansion. We review investment across brand development, supply chain optimisation and systems infrastructure, ensuring that capital is deployed in line with strategic priorities and expected returns. In FY25/26 investment was directed toward brand building and manufacturing capacity/
capability. (http://capability.in)
Our multi-year capital refresh programme in Cumbernauld is now nearing completion with the third and final new manufacturing line successfully entering commission in January 2026 on time and within budget. We anticipate that overall cash capital expenditure will peak in FY26/27 at c.£40m before returning to £30m-£35m in FY27/28, and continuing in that range thereafter as we continue to invest to support our growth ambitions. Net cash from operating activities is expected to more than support the capital expenditure profile.
● Disciplined M&A: We seek acquisitions that provide greater access to high-growth segments or geographic expansion, and that will be value accretive to the business through integration and scaling. M&A evaluation is based on a range of criteria including strategic fit alongside medium-term ROCE and margin impact. During the year we invested in higher growth segments of functional health (Innate-Essence) and premium socialising (Frobishers and, post year end, Fentimans) while exiting the low margin and ROCE dilutive Strathmore water brand. The Board currently monitors Net Debt/EBITDA to ensure we retain the capacity for mid-to-large scale M&A should the right opportunity emerge.
● Growing Dividends: Reflecting our cash-generative business
model and financial discipline, we are committed to sustainable dividend
appreciation, and a dividend that grows in line with profit performance. We
target a dividend cover of at least 2x, ensuring a reliable shareholder return
while retaining sufficient capital to fund our strategic growth ambitions.
This year we are proposing a final dividend of 15.27p, a 11.0% increase on the
prior year (FY24/25: 13.76p) taking the full year dividend* to 18.71p. Our
interim dividend policy is set at 25% of the prior year final dividend -
providing clarity and certainty for shareholders.
Acquisitions & Integration
The Group completed two strategic transactions (Innate-Essence and Frobishers)
during the reporting period, and one transaction (Fentimans) in February
shortly after the year-end close. These are accounted for as follows:
1. Innate-Essence: In July 2025 we invested an initial consideration of
£14.7m, and an estimated contingent consideration of £2.0m, for a 50.1%
share in Innate-Essence, the company which owns the 'Turmeric Co' & 'Raw
Hydrate' brands. The transaction aligns with our strategy and establishes our
presence in the high-growth functional health segment. Since acquisition
Innate-Essence has delivered double-digit revenue growth and contributed £6m
to Group revenue. Whilst currently loss making, we anticipate that the
investment will become a positive contributor to operating margin and ROCE by
year three. The transaction structure preserves the entrepreneurial culture of
the founders, who remain in management and hold 49.9%, aligns founders
incentives with our long-term scaling objectives and gives AG Barr control of
the strategic direction.
2. Frobishers: Towards the end of the financial period we acquired 100% of
the premium fruit juice brand for £12.9m. The acquisition supports our
expansion into the higher growth premium socialising sector where soft drinks
are currently benefiting from consumers seeking alcohol alternatives. We
intend to integrate the brand into our core business to leverage both our
route to market access and brand building capabilities. Integration will be
across all support functions, with associated efficiencies beginning to come
through in H2 FY26/27. The business is expected to become accretive to the
Group on an operating margin basis from FY27/28. Based on historical
performance, the acquisition was made at c.1x sales and c.12x profit multiple
with the intention to scale and realise synergies over the coming 18 months as
we integrate and grow the brand.
3. Fentimans: Acquired for £38.4m, plus a £2.1m repayment of director's
loans, in an all cash transaction that completed after the financial year end
and is being treated as a post balance sheet event. The transaction brings the
world-renowned "Botanical Brewing" brand into the Group as a key driver of our
expansion into the higher growth, premium socialising segment. The last
statutory filings for Fentimans (December 2024) recorded a profit of £1.4m on
sales of c.£40m and as such it is currently margin dilutive to the group
performance. We anticipate that the brand will be integrated into our core
business and we are currently evaluating and finalising our plans. It is
likely that integration will take place during FY26/27 with associated
efficiencies from H2. Potential manufacturing synergies are unlikely until
FY28/29.
The accounting treatment within these accounts reflects our different levels
of ownership and the timing of the transactions:
Innate Essence Frobishers Fentimans
Valuation £14.7m + future performance related payments in return for 50.1% equity stake £12.9m (cash free debt free) in return for 100% equity £38.4m (cash free debt free) in return for 100% equity, plus £2.1m paid to
settle existing Directors Loan Account
Accounting IFRS10: Full equity consolidation
A Non-Controlling Interest (NCI) is recognised in equity to reflect the 49.9% Full equity consolidation recognising 100% ownership No impact in FY25/26
minority share
P&L Six months of trading in FY25/26 Acquisition was towards the end of the year and did not materially impact the No impact in FY25/26
financials
Balance Sheet The fair value of intangible assets (brands) and goodwill The fair value of intangible assets and goodwill No impact in FY25/26
As detailed above, both Frobishers and Fentimans will be dilutive to Group
operating margin and ROCE while they undergo integration and scaling plans.
This is anticipated to result in Group ROCE being towards the lower end of the
target 19-21% range for FY26/27 and FY27/28 before rising again, and is in
line with the Group's strategy of supporting growth alongside ongoing
financial discipline to achieve targeted Group levels.
There are no plans to integrate Innate-Essence. It will continue to operate
with a dedicated management team.
Balance Sheet & Cash Flow
The Group remains financially strong with significant net cash from operating
activities. We have maintained good financial discipline throughout the year
with no material trade debt issues, appropriate inventory levels, a defined
benefit pension surplus and a £28m increase in the net asset base to £346m.
Together with strong growth in adjusted operating profit*, this sustained
adjusted Return on Capital Employed* of 20.4%.
● Net cash from operating activities: Cash generation
remains a core strength. We generated net cash from operating activities of
£51.0m, supported by disciplined working capital management and enabling
execution of both our asset capacity/capability programme and our M&A
strategy.
● Working capital: Overall working capital impact on cash
flow was an outflow of £8m; however, this was primarily as a result of the
timing of supplier payments ahead of the year end date coinciding with 31
January (year end date in the prior year was 25 January). Excluding acquired
balance sheets, underlying receivables were up marginally driven by revenue
growth and inventory levels were slightly lower reflecting good inventory
management and the prior year having an inventory build related to the
Cumbernauld manufacturing line refresh programme.
● Liquidity/ Net cash: We ended the year with £41.6m Net
Cash at Bank*, £22.3m lower than the previous year due to our M&A
activity. We maintain significant financial resilience and have debt capacity
should further compelling opportunities arise. Shortly before the end of the
financial year, we secured a £40m short term debt facility, which was fully
drawn down at year end to support funding of the Fentimans acquisition before
£20m was repaid in mid-February 2026. The Group is currently working to
secure a new facility to follow the expiry (May 2026). We have received strong
indications of continued support from our banking partners and are currently
in advanced discussions with them to secure a new, longer-term facility. Based
on this positive engagement, alongside our robust operational cash flows and
strong balance sheet, the Board has a high degree of confidence that the new
facility will be finalised well ahead of the current maturity date. Should
there be any delay in securing the new facility, we have other options to
ensure good short-term liquidity.
● Capital Expenditure: We recognise the value of a
well-invested asset base and the benefits this can bring to production
efficiency and to enabling in-sourcing production. Cash capital expenditure*
of £30.4m (FY24/25: £19.2m) was focused on our multi-year asset refresh
programme at our Cumbernauld site. This programme is in its final stage with
two refreshed manufacturing lines in operation and our new high speed can line
currently in commissioning. The programme will complete in H1 FY26/27 on time
and to budget. In FY26/27 our capex programme will transition to the expansion
of capacity and capabilities in both Milton Keynes and Cumbernauld to enable
the completion of our Boost in-sourcing initiative. In addition we will be
commencing our sustainability focused installation of heat pumps across the
production footprint. We expect cash capex to peak in FY26/27 at c.£40m
before returning to a more normalised c.£30-35m over the medium term.
● Debt Capacity: The Board retains an intention to operate an
efficient balance sheet, allowing for the option of using a prudent level of
debt to capitalise on business growth opportunities when appropriate. We are
comfortable that the cashflows and earnings profile of the Group could support
a debt capacity up to 2.5x EBITDA.
● Tax: Our effective tax rate was 25.4%, slightly higher than
the statutory rate due to the non-deductibility of certain costs.
Technical & Governance
● Accounting Policies: The Group's financial statements have
been prepared in accordance with UK adopted International Accounting Standards
and the UK Listing Rules of the Financial Conduct Authority. There have been
no changes to the accounting policies applied this year. All new or amended
standards that are applicable have been adopted with no material impact on the
results for the current and prior reporting periods.
● Financial Risk Management: The treasury and commodity risks
faced by the Group are identified and managed by the Group Treasury and
Commodity Committee whose activities are carried out in accordance with Board
approved policies and subject to continued Audit and Risk Committee oversight.
Key financial risks managed by this committee include exposures to foreign
exchange rates and the management of the Group's commodity, debt and liquidity
positions. The Group uses financial instruments to hedge against foreign
currency exposures. No transactions are entered into for speculative
purposes. The Group seeks to mitigate risks in relation to supply continuity
of key raw materials and ingredients by developing strong commercial
relationships with our key suppliers. The monthly Financial Governance
Committee maintains oversight on all aspects of financial governance and
compliance. It reports to the Executive Committee and regularly updates the
Audit and Risk Committee.
● Pensions: The AG Barr Pension Scheme (closed to new entrants)
remains in a surplus of £0.5m (IAS 19). We continue to progress our long
standing pension de-risking programme. During the financial period the pension
fund completed a third buy-in policy with Canada Life. In addition, as the
pension fund is now fully funded, the asset backed funding programme (CAR)
that has been in place since 2013 has now been wound up. The accounting
treatment associated with the elimination of the CAR has no impact on the
group income statement or balance sheet.
● Treasury: We maintain a conservative treasury policy focused on
capital preservation and liquidity. The Group remained net cash positive
throughout FY25/26, with surplus cash held on rolling short-term deposits. The
resulting bank interest income of £1.5m was partly offset by finance charges
related to short-term overdraft usage and lease interest costs under IFRS 16.
Outlook
We have delivered a robust set of results that reflect the strength of our
brands and the success of our margin rebuild program. We exit FY25/26 with
strong momentum having made good progress across all our strategic growth
drivers described in the Chief Executive Officer Statement.
We enter FY26/27 with a broader portfolio of leading UK brands, a strong
innovation pipeline and a clear strategy to deliver consistent profitable
growth while maintaining our reputation for strong financial discipline.
Having successfully rebuilt our profitability metrics, we aim to keep those
metrics within our targeted ranges, while continuing to invest in growth
through capital projects and acquisitions which we recognise can impact
efficiency / profitability metrics in the short-term. Our medium term key
financial targets are unchanged - delivering top line growth of a minimum 4%
while maintaining operating margin within the 14-16% range, and ROCE within
the 19-21% range.
Our focus for the coming year is to continue to deliver core brand growth
through the strong execution of proven brand building strategies, capture the
full synergy opportunities from recent acquisitions and continue to drive
operational efficiencies across our supply chain base, all conducted within a
robust framework of strong financial control.
Stuart Lorimer
CHIEF FINANCE AND OPERATING OFFICER
CONSOLIDATED INCOME STATEMENT FOR THE 53 WEEKS ENDING 31 JANUARY 2026
2026* 2025*
£m £m
Revenue 437.3 420.4
Cost of sales (260.0) (256.1)
Gross profit 177.3 164.3
Operating expenses (115.7) (112.6)
Operating profit 61.6 51.7
Finance income 1.7 2.0
Finance costs (0.7) (0.5)
Profit before tax 62.6 53.2
Tax on profit (15.9) (13.5)
Profit for the period 46.7 39.7
Attributable to:
Equity shareholders of the parent Company 47.1 39.7
Non-controlling interests (0.4) -
Earnings per share (pence)
Basic earnings per share 42.27 35.81
Diluted earnings per share 41.80 35.43
* 2026 was a 53 week period and 2025 was a 52 week period
STATEMENT OF COMPREHENSIVE INCOME FOR THE 53 WEEKS ENDING 31 JANUARY 2026
2026* 2025*
£m £m
Profit for the year 46.7 39.7
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit pension plans (7.8) 0.1
Deferred tax movements on pensions 2.0 1.5
Items that will be or have been reclassified to profit or loss
Gain arising on cash flow hedges during the period - 0.1
Other comprehensive (expense)/income for the year, net of tax (5.8) 1.7
Total comprehensive income for the year 40.9 41.4
Attributable to:
Equity shareholders of the parent Company 41.3 41.4
Non-controlling interests (0.4) -
STATEMENTS OF FINANCIAL POSITION AS AT 31 JANUARY 2026
2026 2025
£m £m
Non-current assets
Intangible assets 162.3 129.2
Property, plant and equipment 145.6 118.0
Right-of-use assets 8.4 5.0
Loans and receivables 1.1 -
Retirement benefit surplus 0.5 6.8
317.9 259.0
Current assets
Inventories 31.7 31.7
Trade and other receivables 82.2 76.8
Derivative financial instruments - 0.2
Current tax asset 0.6 0.4
Assets classified as held for sale 0.2 0.9
Short-term investments 20.2 42.5
Cash 61.4 21.4
196.3 173.9
Total assets 514.2 432.9
Current liabilities
Trade and other payables 74.6 73.2
Loans and other borrowings 40.0 -
Derivative financial instruments 0.1 0.3
Lease liabilities 1.8 1.8
Provisions 1.2 1.1
117.7 76.4
Non-current liabilities
Deferred tax liabilities 41.9 36.0
Lease liabilities 6.2 2.8
Provisions 0.7 -
Derivative financial instruments 0.1 0.1
Contingent consideration 2.0 -
50.9 38.9
Capital and reserves
Share capital 4.7 4.7
Share premium account 0.9 0.9
Share options reserve 4.3 3.6
Other reserves - -
Retained earnings 328.1 308.4
Total shareholder equity 338.0 317.6
Non-controlling interest in equity 7.6 -
345.6 317.6
Total equity and liabilities 514.2 432.9
STATEMENT OF CHANGES IN EQUITY FOR THE 53 WEEKS ENDING 31 JANUARY 2026
Share capital Share premium account Share options reserve Other reserves Retained earnings Total Non-controlling interests Total
£m £m £m £m £m £m £m £m
At 25 January 2025 4.7 0.9 3.6 - 308.4 317.6 - 317.6
Profit for the year - - - - 47.1 47.1 (0.4) 46.7
Other comprehensive expense - - - - (5.8) (5.8) - (5.8)
Total comprehensive income/(expense) for the year - - - - 41.3 41.3 (0.4) 40.9
Company shares purchased for use by employee benefit trusts - - - - (5.0) (5.0) - (5.0)
Proceeds on disposal of shares by employee benefit trusts - - - - 0.7 0.7 - 0.7
Recognition of share-based payment costs - - 2.5 - - 2.5 - 2.5
Transfer of reserve on share award - - (1.9) - 1.9 - - -
Deferred tax on share-based payments - - 0.1 - - 0.1 - 0.1
Recognition of non-controlling interest - - - - - - 8.0 8.0
Dividends paid - - - - (19.2) (19.2) - (19.2)
At 31 January 2026 4.7 0.9 4.3 - 328.1 338.0 7.6 345.6
Share capital Share premium account Share options reserve Other reserves Retained earnings Total
£m £m £m £m £m £m
At 28 January 2024 4.7 0.9 4.0 (0.1) 283.2 292.7
Profit for the year - - - - 39.7 39.7
Other comprehensive income - - - 0.1 1.6 1.7
Total comprehensive income for the year - - - 0.1 41.3 41.4
Company shares purchased for use by employee benefit trusts - - - - (2.7) (2.7)
Proceeds on disposal of shares by employee benefit trusts - - - - 1.0 1.0
Recognition of share-based payment costs - - 2.4 - - 2.4
Transfer of reserve on share award - - (2.9) - 2.8 (0.1)
Deferred tax on share-based payments - - 0.1 - - 0.1
Dividends paid - - - - (17.2) (17.2)
At 25 January 2025 4.7 0.9 3.6 - 308.4 317.6
CASH FLOW STATEMENT FOR 53 WEEKS ENDING 31 JANUARY 2026
2026* 2025*
£m £m
Operating activities
Profit for the period before tax 62.6 53.2
Adjustments for:
Interest receivable (1.7) (2.0)
Interest payable 0.7 0.5
Impairment of assets classified as held for sale 0.5 1.6
Depreciation of property, plant and equipment 10.8 11.0
Amortisation of intangible assets 0.5 1.2
Share-based payment costs 2.5 2.4
Lease modification (0.5) -
Gain on sale of property, plant and equipment (1.2) (0.3)
Operating cash flows before movements in working capital 74.2 67.6
Decrease in inventories 2.3 4.8
Increase in receivables (2.1) (13.0)
(Decrease)/increase in payables (8.2) 1.5
Difference between employer pension contributions and amounts recognised in (1.3) (3.3)
the income statement
Cash generated by operations 64.9 57.6
Tax paid (13.9) (9.3)
Net cash from operating activities 51.0 48.3
Investing activities
Acquisition of subsidiaries (27.6) -
Cash acquired on acquisition of subsidiaries 8.8 -
Loans provided (1.1) -
Purchase of property, plant and equipment (30.4) (19.2)
Proceeds on sale of property, plant and equipment 2.7 1.0
Funds placed on fixed term deposit (107.1) (90.5)
Funds returned from fixed term deposit 129.6 68.0
Interest received 1.8 1.4
Net cash used in investing activities (23.3) (39.3)
Financing activities
Loans drawn 50.0 -
Loans repaid (11.6) -
Lease payments (2.3) (2.1)
Purchase of Company shares by employee benefit trusts (5.0) (2.7)
Proceeds from disposal of Company shares by employee benefit trusts 0.7 1.0
Dividends paid (19.2) (17.2)
Interest paid (0.3) (0.2)
Net cash generated by/(used in) financing activities 12.3 (21.2)
Net increase/(decrease) in cash 40.0 (12.2)
Cash at beginning of year 21.4 33.6
Cash at end of year 61.4 21.4
* 2026 was a 53 week period and 2025 was a 52 week period
1. General Information
A.G. BARR p.l.c. (the "Company") and its subsidiaries (together the "Group")
manufacture, distribute and sell a range of beverages. The Group has
manufacturing sites in the UK and sells mainly to customers in the UK with
some international sales.
The Company is a public limited company, which is listed on the London Stock
Exchange and incorporated and domiciled in Scotland. The address of its
registered office is Westfield House, 4 Mollins Road, Cumbernauld, G68 9HD.
The financial year represents the 53 weeks ended 31 January 2026 (prior
financial year 52 weeks ended 25 January 2025).
Basis of preparation
The financial information for the year ended 31 January 2026 contained in this
news release was approved by the Board on 31 March 2026. This announcement
does not constitute statutory financial statements within the meaning of
Section 435 of the Companies Act 2006, but is derived from those financial
statements, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the UK and in conformity
with the requirements of the Companies Act 2006.
This information has been prepared under the historical cost method except
where other measurement bases are required to be applied under IFRS, using all
standards or interpretations required for the financial period beginning 26
January 2025. No standards or interpretations have been adopted before the
required implementation date. Whilst the financial information included within
this announcement has been prepared in accordance with the recognition and
measurement criteria of IFRS, it does not comply with all disclosure
requirements.
Statutory financial statements for the year ended 25 January 2025 have been
delivered to the Registrar of Companies. Statutory financial statements for
the year ended 31 January 2026, which have been prepared on the going concern
basis, will be delivered to the Registrar of Companies following the Group's
Annual General Meeting.
Going concern
The directors have adopted the going concern basis in preparing these accounts
after assessing the principal risks.
The most significant potential financial impact would be due to a significant
reduction in sales. The revenue and operational leverage impact of such a
revenue loss would have a negative impact on Group profitability, however the
scenario modelling would indicate that the Group would maintain sufficient
liquidity headroom without fully utilising the existing facilities or
breaching the financial covenants of the revolving credit facility over the
next 12 months. We would anticipate a recovery in the following years as our
experience through the Covid-19 pandemic has reinforced our confidence that
the Group can remain profitable and cash-generative through prolonged
disruption and fully recover after such events.
The Group currently has two credit facilities in place. A revolving credit
facility of £40m, with a term date ending on 8 May 2026; and an open-ended
overdraft of £15m. The revolving credit facility was fully drawn at 31
January 2026 in order to fund the acquisition of Fentimans Ltd post year end
on 2 February 2026 for total consideration of £40.5m, before £20m was repaid
in mid-February 2026. The Group is currently working to secure a new
revolving credit facility to replace the current one, which expires in May
2026. We have received strong indications of continued support from our
banking partners and are currently in advanced discussions to secure the new,
longer-term facility. The Board has a high degree of confidence that the new
facility will be finalised well ahead of the current facility's maturity date.
Should there be any delay in securing the new facility, we have other options
to ensure good short-term liquidity.
The directors believe that the Group is well placed to manage its financing
and other business risks satisfactorily, and have a reasonable expectation
that the Group and parent Company will have adequate resources to continue in
operation for at least 12 months from the signing date of these consolidated
financial statements. They therefore consider it appropriate to adopt the
going concern basis of accounting in preparing the financial statements.
The auditors have reported on those financial statements. The reports were not
qualified, did not contain a reference to any matters which the auditors drew
attention by way of emphasis without qualifying their report, and did not
contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group
A number of new or amended standards became applicable for the current
reporting period and the Group had to change its accounting policies as a
result of adopting the following standard:
• Lack of exchangeability - Amendments to IAS 21
The amendments listed above do not have a material impact on the results for
the current and prior reporting periods.
(b) New standards, amendments and interpretations issued but not effective for
the financial year beginning 26 January 2025 and not adopted early
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for 31 January 2026
reporting periods and have not been adopted early by the Group. These
standards, amendments or interpretations are not expected to have a material
impact on the Group in the current or future reporting periods or on
foreseeable future transactions.
The assessment of the impact of IFRS 18 - Presentation and disclosure of
financial statements, which will become effective in the year ending 29
January 2028, is still in progress and will change the presentation of the
consolidated financial statements.
2. Segment reporting
The Board and senior executives have been identified as the Group's chief
operating decision-makers (CODM), who review the Group's internal reporting in
order to assess performance and allocate resources.
The reportable segments have been aggregated by nature of the product as well
as having similar production and distribution processes, consistent with the
internal reporting structure used by the CODM.
The Group reports on the following segments:
1. Soft Drinks - includes carbonated and non-carbonated beverages from
brands such as IRN-BRU, Boost, Barr, Rubicon, Rio and Frobishers.
2. Cocktail Solutions - includes beverages from the FUNKIN brand for premium
socialising.
3. Other - includes oat-based products from the MOMA brand and functional
beverages from Innate-Essence business.
Segment performance is evaluated based on revenue and gross profit and is
measured consistently with gross profit in the consolidated financial
statements.
As the Group's operating costs are charged centrally, the performance of the
segments is assessed by reference to their revenue and gross profit as
reported to CODM.
Soft drinks Cocktail solutions Other Total
Year ended 31 January 2026 £m £m £m £m
Total revenue 382.0 35.8 19.5 437.3
Gross profit 157.4 13.6 6.3 177.3
Soft drinks Cocktail solutions Other Total
Year ended 25 January 2025 £m £m £m £m
Total revenue 368.8 40.3 11.3 420.4
Gross profit 145.9 14.8 3.6 164.3
There are no material intersegment sales. All revenue is in relation to
product sales, which is recognised at a point in time, upon delivery to the
customer.
All of the assets and liabilities of the Group are managed on a central basis
rather than at a segment level. As a result, no reconciliation of segment
assets and liabilities to the statement of financial position has been
disclosed for either of the periods presented.
Included across all segments are revenues arising of approximately £78.2m,
which arose from sales to the Group's largest customer (2025: £75.7m). No
other single customers contributed 10% or more to the Group's revenue in
either 2025 or 2026.
Geographical information
The Group operates predominantly in the UK with some worldwide sales. All of
the operations of the Group are based in the UK.
2026 2025
Revenue £m £m
UK 418.8 401.4
Rest of the world 18.5 19.0
437.3 420.4
The rest of the world revenue includes sales to the Republic of Ireland and
international wholesale export houses.
All of the assets of the Group are located in the UK.
3. Taxation 2026 2025
£m £m
Charge/(credit) to the income statement
Current tax on profits for the year 13.5 9.7
Adjustments in respect of prior years (0.3) (1.5)
Total current tax expense 13.2 8.2
Deferred tax
Origination and reversal of:
Temporary differences 2.7 4.3
Adjustments in respect of prior years - 1.0
Total deferred tax expense 2.7 5.3
Total tax expense 15.9 13.5
In addition to the above movements in deferred tax, a deferred tax debit of
£2.0m (2025: debit of £1.5m) has been recognised in other comprehensive
income and a debit of £0.1m (2025: debit of £0.1m) has been taken direct to
reserves.
The tax on the Group's profit before tax differs from the amount that would
arise using the tax rate applicable to the consolidated profits of the Group
as follows:
2026 2026 2025 2025
£m % £m %
Profit before tax 62.6 53.2
Tax at 25.0% (2025: 25.0%) 15.7 25.0 13.3 25.0
Tax effects of:
Items that are not deductible in determining taxable profit 0.5 0.9 0.7 1.3
Current tax adjustment in respect of prior years (0.3) (0.5) (1.5) (2.8)
Deferred tax adjustment in respect of prior years - - 1.0 1.9
Total tax expense 15.9 25.4 13.5 25.4
The weighted average tax rate was 25.4% (2025: 25.4%). The standard rate of
corporation tax applied to reported profit is 25% (2025: 25%).
4. Dividends
Dividends paid in the financial year were as follows:
2026 2025 2026 2025
per share per share £m £m
Final dividend 13.76 p 12.40 p 15.3 13.8
Interim dividend 3.44 p 3.10 p 3.9 3.4
17.20 p 15.50 p 19.2 17.2
The directors have proposed a final dividend in respect of the year ended 31
January 2026 of 15.27p per share. It will be paid on 5 June 2026 to all
shareholders who are on the Register of Members on 8 May 2026.
Dividends payable in respect of the financial year were as follows:
2026 2025
per share per share
Final dividend 15.27 p 13.76 p
Interim dividend 3.44 p 3.10 p
Total dividend payable 18.71 p 16.86 p
CAUTIONARY STATEMENT
This report is addressed to the shareholders of A.G. BARR p.l.c. and has been
prepared solely to provide information to them.
This report is intended to inform the shareholders of the Group's performance
for the year ended 31 January 2026. This report contains forward-looking
statements based on knowledge and information available to the directors as at
the date the report was prepared. These statements should be treated with
caution due to the inherent uncertainties underlying any forward-looking
information and any statements about the future outlook may be influenced by
factors that could cause actual outcomes and results to be materially
different.
Glossary
Non-GAAP measures are provided because they are tracked by management to
assess the Group's operating performance and to inform financial, strategic
and operating decisions.
Definition of non-GAAP measures used are provided below:
Adjusted basic earnings per share is calculated by dividing adjusted profit
attributable to equity holders by the weighted average number of shares in
issue.
Adjusted operating margin is calculated by dividing adjusted operating profit
by revenue.
Adjusted operating profit is calculated as operating profit after adjusting
items.
Adjusted profit before tax is calculated as reported profit before tax after
adjusting entries as disclosed in the adjusting entries accounting policy.
Adjusted return on capital employed (Adjusted ROCE) is defined as adjusted
profit before tax divided by invested capital.
Cash capital expenditure is defined as the cash outflow on purchases of
property, plant and equipment, and is disclosed in the cash flow statement.
Full year dividend is defined as the total dividends declared for the
financial year.
Net cash at bank is defined as the net of cash plus short-term investments
less loans and other borrowings as shown in the statement of financial
position.
Operating margin is calculated by dividing operating profit by revenue.
Return on capital employed (ROCE) is defined as reported profit before tax as
a percentage of invested capital. Invested capital is a non-GAAP measure
defined as the average of the opening and closing non-current assets plus
current assets less current liabilities excluding all balances relating to any
provisions, financial instruments, interest-bearing liabilities and cash or
cash equivalents.
Reconciliation of non-GAAP measures
Adjusted Consolidated Income Statements
Year ended 31 January 2026
Reported Business reorganisation & integration Acquisition related Asset impairment Total adjustments Adjusted
£m £m £m £m £m £m
Revenue 437.3 - - - - 437.3
Cost of sales (260.0) - - - - (260.0)
Gross profit 177.3 - - - - 177.3
Operating expenses (115.7) 1.3 1.4 0.5 3.2 (112.5)
Operating profit 61.6 1.3 1.4 0.5 3.2 64.8
Finance income 1.7 - - - - 1.7
Finance costs (0.7) - - - - (0.7)
Profit before tax 62.6 1.3 1.4 0.5 3.2 65.8
Tax on profit (15.9) (0.3) (0.4) - (0.7) (16.6)
Profit for the period 46.7 1.0 1.0 0.5 2.5 49.2
Attributable to:
Equity shareholders of the parent Company 47.1 1.0 0.7 0.5 2.2 49.3
Non-controlling interests (0.4) - 0.3 - 0.3 (0.1)
Year ended 25 January 2025
Reported Business change projects Adjusted
£m £m £m
Revenue 420.4 - 420.4
Cost of sales (256.1) - (256.1)
Gross profit 164.3 - 164.3
Operating expenses (112.6) 5.3 (107.3)
Operating profit 51.7 5.3 57.0
Finance income 2.0 - 2.0
Finance costs (0.5) - (0.5)
Profit before tax 53.2 5.3 58.5
Tax on profit (13.5) (0.9) (14.4)
Profit attributable to equity holders 39.7 4.4 44.1
Adjusting entries:
Business reorganisation & integration - the costs associated with the
integration of FUNKIN and restructuring of the Commercial function and one-off
accrual of costs relating to the integration of the Frobishers business that
will commence in H1 and will be completed by H2 FY26/27.
Acquisition related - professional and transaction fees in relation to the
acquisition work undertaken in the financial year for Innate-Essence,
Frobishers and Fentimans.
Asset impairment - impairment of vehicles that were part of Barr Direct
operations.
Business change projects - the costs associated with the business change
projects involving the closure of Barr Direct operations and the integration
of the Boost business.
Reconciliation of non-GAAP measures
Adjusted basic EPS 2026 2025
Adjusted profit attributable to equity holders of the Company £m 49.3 44.1
Weighted average number of shares in issue 111,438,412 110,874,571
Adjusted basic EPS (p) 44.24 39.77
Full year dividend 2026 2025
pence
pence
Interim dividend paid 3.44 3.10
Final dividend declared 15.27 13.76
Full year dividend 18.71 16.86
Net cash at bank 2026 2025
£m
£m
Cash 61.4 21.4
Short-term investments 20.2 42.5
Loans and other borrowings (40.0) -
Net cash at bank 41.6 63.9
Operating margin 2026 2025
£m
£m
Revenue 437.3 420.4
Operating profit 61.6 51.7
Operating margin 14.1% 12.3%
Adjusted operating margin 2026 2025
£m
£m
Revenue 437.3 420.4
Adjusted operating profit 64.8 57.0
Adjusted operating margin 14.8% 13.6%
ROCE 2026 2025
£m
£m
Profit before tax 62.6 53.2
Average invested capital 322.1 281.3
ROCE 19.4% 18.9%
Adjusted ROCE 2026 2025
£m
£m
Adjusted profit before tax 65.8 58.5
Average invested capital 322.1 281.3
Adjusted ROCE 20.4% 20.8%
Average invested capital 2026 2025 2024
£m
£m
£m
Intangible assets 162.3 129.2 130.4
Property, plant and equipment 145.6 118.0 109.0
Right-of-use assets 8.4 5.0 5.2
Inventories 31.7 31.7 36.5
Trade and other receivables 82.2 76.8 63.8
Current tax 0.6 0.4 -
Trade and other payables (74.6) (73.2) (70.3)
356.2 287.9 274.6
Average invested capital 322.1 281.3
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