REG - Barr(A.G.) PLC - Results for year ended 25 January 2025
25/03/2025 07:00
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RNS Number : 9569B Barr(A.G.) PLC 25 March 2025
IMMEDIATE RELEASE
25 March 2025
A.G. BARR p.l.c
("A.G. BARR" or "the Company")
Results for year ended 25 January 2025
Delivering strong growth and improved returns
A.G. BARR, the branded multi-beverage business with a portfolio of
market-leading UK brands, including IRN-BRU, Rubicon, Boost and FUNKIN today
announces its results for the year ended 25 January 2025 (2024/25).
Financial summary
2024/25 2023/24 Increase / (Decrease)
Revenue £420.4m £400.0m 5.1%
Adjusted Profit Before Tax* £58.5m £50.5m 15.8%
Adjusted Operating Margin* 13.6% 12.3% 130 bps
Adjusted Return on Capital Employed* 20.1% 18.4% 170 bps
Adjusted EPS (basic pence/share)* 39.77p 33.88p 17.4%
Statutory Profit Before Tax £53.2m £51.3m 3.7%
Statutory Operating Margin 12.3% 12.5% (20) bps
Statutory Return on Capital Employed 18.5% 18.7% (20) bps
Statutory EPS (basic pence/share) 35.81p 34.59p 3.5%
Net cash at bank* £63.9m £53.6m 19.2%
Full year dividend* 16.86p 15.05p 12.0%
Highlights
· Revenue growth: Revenue increased by 5.1% driven by strong
growth in Soft Drinks, up 6.4%. This was led by a standout performance from
Rubicon and continued strong growth from IRN-BRU, with distribution gains and
successful new product launches playing a key role.
· Adjusted Profit Before Tax* growth: Adjusted Profit Before Tax*
of £58.5m, representing growth of 15.8%. Statutory Profit Before Tax of
£53.2m was after £5.3m of one-off costs, treated as adjusting items,
relating to the closure of the Direct Sales operation and integration of
Boost. These costs impact the statutory measures in the table above.
· Adjusted Operating Margin* expansion: Our strategic programme
to rebuild operating margin is ahead of plan with Adjusted Operating Margin*
up 130 bps to 13.6%. During the year we made good progress with insourcing
manufacturing. We also successfully completed projects to strengthen our
convenience channel route to market and integrate Boost into our Soft Drinks
business. All of which delivers significant commercial and operational
synergies.
· Enhanced shareholder value: Adjusted Return on Capital
Employed* improved to 20.1%, Adjusted EPS* is up 17.4% and we continued to
grow dividends with a recommended final dividend of 13.76p.
· Strong financial foundation: We have high levels of on-going
cash generation and a robust balance sheet, with £63.9m net cash at bank*
providing security and optionality.
Strategic initiatives
The Company's strategic programme, focused on both top line growth and margin
enhancement, continues in the current (2025/26) financial year.
In February 2025, an organisational simplification was announced to staff that
will see the integration of the Barr Soft Drinks and FUNKIN businesses into a
unified A.G. BARR operation, streamlining activities and fostering
synergies. Today we are announcing the intention to discontinue the
Strathmore brand later this financial year which, subject to employee
consultation, could lead to the closure of the small manufacturing site
located in Forfar, Scotland.
Outlook
We entered the new 2025/26 financial year in a strong position and current
trading is in line with our expectations.
Our outlook for the year is unchanged - we expect to deliver another year of
revenue growth and margin improvement. The guidance takes into account the
fact that 2025/26 is a 53 week year, the proposed discontinuation of
Strathmore and the additional regulatory compliance costs related to Extended
Producer Responsibility fees and the increased NIC burden.
Euan Sutherland, Chief Executive Officer, commented:
"2024/25 was a successful year for the Company. I would like to take the
opportunity to thank my colleagues across the business who delivered these
excellent financial results.
Looking forward, we have a refreshed strategy centred on growth and are
committed to our long-term financial targets. I am confident that successful
execution of our plans will see another year of positive progress towards our
long-term goals."
Future Events
The business is holding a Capital Markets event in London on 3 June 2025 to
share further details of the refreshed strategy including progress to date and
future execution plans. The next scheduled Trading Update is on 29 July
2025.
Notes
* Items marked with an asterisk are Alternate Performance Measures. These
are non-GAAP measures used by management to assess the business' operating
performance and to inform decisions. Definitions and relevant
reconciliations are provided later in this announcement.
For more information, please contact:
A.G. BARR Instinctif Partners
0330 390 3900 020 7457 2010/05
Euan Sutherland, Chief Executive Officer Justine Warren
Stuart Lorimer, Chief Finance & Operating Officer Matthew Smallwood
Hannah Scott
Chair Statement
I am pleased to report that A.G. BARR has delivered excellent financial
results in the 2024/25 year. This is attributable to the execution of our
clear and consistent growth strategy.
Overview
This year has marked another period of sales growth. This has been achieved
despite the much publicised economic headwinds and the financial pressures on
consumers, which have continued to influence the markets in which we
operate. We have navigated these challenges effectively across the year to
deliver a strong set of results.
We have continued to invest in our brands, people and capital asset base and
made significant progress with our margin rebuild plans. This puts us in a
strong position to deliver sustained growth in the future.
This year has seen a period of management transition, marked by the
appointment of Euan Sutherland as Chief Executive Officer. Under Euan's
leadership, we are seeing the benefits of a renewed ambition to accelerate the
growth of the business.
Highlights:
· Our soft drinks portfolio delivered strong volume and revenue
growth, with a stand-out performance from the Rubicon brand which saw double
digit revenue growth.
· We continued to invest in our supply chain to expand capacity and
increase in-house manufacturing to support our growth plans. This investment
provided tangible benefits including enhanced margins and improved customer
service. Our multi-year capital investment programme at our Cumbernauld site
progressed as planned. In Q4 the Board approved the initial phases of the
next significant step in expanding our Milton Keynes site, which will further
increase capability and capacity over the next 3-5 years.
· We successfully progressed our strategic programme to strengthen
our convenience channel route to market and integrate Boost into our Barr Soft
Drinks business. Both projects completed during the year and are delivering
initial positive results.
· The business is in excellent financial health, with strong cash
generation, a robust balance sheet and improved return on capital.
· Our performance has been driven by an outstanding team, whose
hard work and dedication has been pivotal in executing our strategy.
Board
Euan Sutherland joined the business as Chief Executive Officer on 1 May
2024. With extensive experience in consumer goods, a proven track record of
growing businesses and a history of delivering major transformation
initiatives, Euan brings valuable expertise to the role. The transition was
successfully completed by the end of H1, with no disruption to the business.
Euan, along with the senior leadership team, is fully focused on developing
the Company's strategy and accelerating its growth trajectory.
Roger White retired as Chief Executive Officer of the Company and resigned
from the Board on 30 April 2024, after over 22 years of dedicated service.
Roger played a key role in transforming A.G. BARR from a regional soft drinks
business into a highly successful, multi-beverage Company delivering
significant value to shareholders, stakeholders and employees. The Board and
I extend our gratitude for his outstanding contribution and wish him well for
the future. To ensure a smooth leadership transition, Roger remained
available to the business until the end of July 2024.
Jonathan Kemp stepped down from the Board on 31 May 2024 after 20 years of
service and retired from his role as Commercial Director on 30 September
2024. Jonathan is continuing with the Company to lead several key projects
and ensure a smooth leadership transition.
Responsibility
Our Environmental, Social, and Governance (ESG) Board sub-committee is well
established, providing crucial oversight and direction for the Company. Over
the past 12 months, it has focused on advancing our environmental
sustainability initiatives and progressing our net-zero roadmap. We now
procure REGO backed renewable electricity across all our operational sites and
we are also pleased to report that our carbon emissions across our operations
(Scope 1&2) reduced by c.43% compared to our baseline year.
People, culture and values
During the year we completed two key milestones in our strategic programme:
the closure of our Barr Direct operation and the integration of the Boost
business into our broader Barr Soft Drinks portfolio. A number of employees
were offered new roles in the business. However, these initiatives resulted
in redundancies for a number of colleagues. Such decisions are never made
lightly, and I would like to sincerely thank those impacted for their hard
work and dedication during their time with us.
A.G. BARR continues to foster a unique and positive culture, embracing and
supporting the individuality of both our people and our brands. I am pleased
to report that employee engagement, as measured by our Everyone Barr None
survey, has increased further over the past 12 months. This improvement
reflects our continued efforts to support colleagues in key areas such as
diversity, equality, reward, mental health, learning and development and
workplace flexibility. We take as much pride in our values and behaviours as
we do in our financial performance.
Throughout the year, we continued to run employee / Board engagement sessions
and have been encouraged by the open and constructive feedback shared. This
feedback has become a key driver in shaping our thinking, planning and future
actions.
Capital allocation and dividend
A.G. BARR operates within a clear capital allocation framework, prioritising
business investment and shareholder returns. The Board is pleased to uphold
its progressive dividend policy and recommends a final dividend of 13.76p per
share, bringing the proposed total dividend for the full year to 16.86p per
share. This represents year-on-year growth of 12.0% (2023/24: 15.05p). The
final dividend will be payable on 6 June 2025 to shareholders on the Register
of Members as of the close of business on 9 May 2025, with the ex-dividend
date set for 8 May 2025.
Looking ahead
I am proud of A.G. BARR's achievements over the past year and confident in
both our plans for the year ahead and our long-term strategy. We aim to
build on the good momentum we have established in recent years to deliver the
strong growth opportunity that is within our control. We are also mindful
and responsive to external factors. We will continue to invest in our
market-leading brands, assets and people, and drive forward our well-advanced
margin rebuild plan. I am confident that our strategy will deliver excellent
returns for our shareholders and be positive for all stakeholders.
Mark Allen OBE
CHAIR
Chief Executive Officer's Review
I am delighted to report a strong set of results for the 52 weeks ended 25
January 2025.
As this is my first annual report as Chief Executive Officer of A.G. BARR, I
want to take this opportunity to express my pride in leading such an
outstanding business, with its unique heritage, strong culture and exceptional
brands.
Over the past twelve months we have achieved excellent financial results and
made significant progress with our strategic objectives. Despite challenging
market conditions our team has once again delivered a strong operational
performance.
The following financial metrics highlight our success:
· Revenue £420.4m, an increase of £20.4m, +5.1%
· Adjusted operating margin* 13.6%, an increase of 130bps
· Adjusted profit before tax* £58.5m, an increase of £8.0m,
+15.8%
· Profit before tax £53.2m, an increase of £1.9m, +3.7%
· Adjusted ROCE* 20.1%, an increase of 170bps
· Net cash at bank* £63.9m, an increase of £10.3m, +19.2%
Our business activities are driven by our strategic priorities:
· Connecting with consumers
· Building brands
· Driving efficiency
· Building trust
Throughout the year, we executed our strategy across the business to deliver
growth in both volume and value. Our commercial strategy has proven
effective, delivering mid-single digit revenue growth in the year and
providing the platform for future years as we pursue our ambition to
accelerate sustainable growth. We continuously improved our supply chain
throughout the year, leading to increased efficiencies and consistently high
levels of customer service. We continued to invest in our operational assets
and teams to expand capacity, improve efficiency and make more of our volume
in-house - all of which are key to unlocking future growth. Whilst we did
not make any acquisitions during the year, we continue to actively explore
opportunities to further strengthen and diversify our brand portfolio.
In terms of my leadership team, I am pleased to welcome Dino Labbate, who
joined us in January 2025 as Chief Commercial Officer. Dino brings valuable
experience from his time at Britvic PLC, where he most recently served as the
GB Commercial Director for Hospitality. In addition to his extensive FMCG
expertise, Dino brings a passion and drive that will be instrumental in
helping us achieve our ambitious growth plans across our brand portfolio going
forward.
Soft drinks market
During the period value growth of the total UK soft drinks market was 2.6%,
down from 8.3% in the prior year when high inflation was prevalent. Both
price and volume contributed to the growth although volume was constrained by
poor summer weather, which negatively impacted the market during the key June
to August trading period.
Within the soft drinks market, the Energy category continued to outperform the
wider market, increasing 5.5% year-on-year in value terms. Other Flavoured
Carbonates, an important category for IRN-BRU, Rubicon and Barr Flavours, was
up 0.3% in value but down 2.7% in volume. The Still Juice category remained
resilient, achieving a 3.9% increase in value.
We are pleased to report that over the same period our soft drinks portfolio
delivered a growth rate of 4.6% in volume and 6.4% in value, ahead of the
market on both measures.
(Source: Circana Total Soft Drinks Market 52 weeks to 25 January 2025)
Cocktail Market
The ready-to-drink (RTD) alcohol market grew by 7% over the past 12 months,
now worth £624m. The cocktail segment has been the main growth driver within
the total RTD category. FUNKIN remains the number one RTD cocktail brand
within this growing sector.
As has been widely documented, the UK on-trade market continued to experience
challenging trading conditions during the period because of consumer behaviour
related to affordability, the trend of consumption moderation and a shift to
non-spirit based socialising occasions. FUNKIN's on-trade business was not
immune to this and as such revenue declined year-on-year; the strong
performance in RTD products helped but only partly mitigated this decline,
resulting in a 6% overall revenue decrease for FUNKIN.
(Source: Nielsen PRE MIXED ALCOHOLIC DRINKS Total Coverage YTD 28.12.2024)
Plant-based milk market
The plant-based milk market remained relatively flat year-on-year, with a
total worth of £511m. However, overall volumes declined by 2.5%. Oat was
the only segment of the plant-based milk category to deliver volume growth
(+1.3%) supporting a value increase of 3.3% in this category. Oat milk now
accounts for 57% of the total plant-based milk market, up 2% on the prior
year.
MOMA grew ahead of the market with oat milk sales up double digit, driven by
distribution gains particularly within hospitality and specialty coffee
channels.
(Sources: Nielsen Scantrack All Channels 52 weeks to 2 November 2024)
Strategy
Connecting with consumers
Consumer engagement has been central to the execution of our strategy
throughout the year. Our diverse portfolio of brands appeals to a wide
demographic, and we employ a range of initiatives to enhance brand awareness,
create excitement, build loyalty and provide consumers with greater choice.
Consumer marketing campaigns, in-store activation and innovation are the
primary ways we build relationships with consumers. We increasingly use
digital marketing to advertise and promote our brands to consumers.
During the year we invested in several successful advertising campaigns, with
the standout being IRN-BRU's highly effective Euro's football tournament
campaign which significantly raised the brand's profile across the UK. Other
highlights included Rubicon's successful 'Release the Sunshine' campaign,
which placed a strong emphasis on digital and social media, as well as Boost's
'There's a Boost for That', its first fully integrated marketing campaign,
which showcased the brand's diverse product range.
During the year, a key priority for FUNKIN was driving growth through
innovation and new product development. New product launches including RTD
Blue Raspberry Martini and IRN-BRU Vodka Martini were supported by advertising
campaigns.
MOMA introduced a bold new look to reinforce its position as the leading
choice for oat milk and porridge. The improved branding highlights enhanced
taste, health benefits and carbon labelling directly on the packaging, making
it easier for consumers to make informed purchasing decisions while also
helping the products stand out on shelf.
Building brands
Brand-building lies at the heart of our growth strategy. The key drivers of
our brand performance and future growth opportunity are product distribution
and rate of sale. Our
strategy is to grow into the significant headroom which exists on both of
these. Additionally, innovation is an important part of our strategy as it
allows us to explore new markets and consumer segments, respond to evolving
preferences and trends and strengthen our competitive position.
IRN-BRU grew volume ahead of the market and delivered a 6.4% increase in sales
revenue. Growth was strongest in England where IRN-BRU achieved a double
digit increase in sales. This result was underpinned by increased consumer
marketing investment and the launch of two limited-edition IRN-BRU XTRA
flavours - Raspberry Ripple and Wild Berry Slush - which attracted new,
younger shoppers to the brand. We continue to see consumer demand increasing
on great tasting, zero sugar options. 2025 will see the brand build consumer
awareness and relevance with an upweighted sampling programme in England.
Rubicon had another outstanding year, achieving a 17% increase in sales. The
fact that Rubicon saw growth in all parts of its portfolio - Flavoured water
(Rubicon Spring), Carbonates, Stills and Energy (Rubicon RAW Energy) - was
particularly pleasing as it confirms our growth strategy is successful.
Rubicon's unique exotic fruit proposition, combined with its vibrant and
energetic brand positioning, continues to resonate with consumers seeking
products and flavours that stand out from the ordinary.
Our focus with the Boost brand this year has been on improving
profitability. Pricing changes, pack changes and the first phases of
insourcing the production of the Boost portfolio all contributed to this.
Boost's revenue growth rate in H2 was high single digit, and with an improved
margin profile and access to our wider soft drinks sales and distribution
channels following integration in H2, we believe Boost is well placed to grow
into a bigger and more profitable brand in 2025/26.
FUNKIN experienced a challenging year, with revenue down 6.1%. The key driver
of this decline was on-going weak consumer demand in the on-trade channel
where late night venues remained particularly affected. Whilst we have seen
the level of decline in this part of our business improve during H2, the
outlook for the on-trade channel continues to be uncertain and unless market
conditions recover we do not expect a significant improvement in 2025/26.
More positively, the FUNKIN ready-to-drink (RTD) business continued growing
strongly, driven by successful innovation and distribution gains. Highlights
included new RTD products Blue Raspberry Martini and limited-edition IRN-BRU
Vodka Martini, as well as the launch of a limited-edition, dessert-inspired
range featuring Chocolate Espresso Martini and Black Forest Gateau. The
brand firmly retains its position as the UK's Number 1 cocktail choice, both
behind the bar and at home.
Our portfolio of challenger brands play an important role in delivering our
growth ambitions. Brand-building activities in the year included: MOMA
introducing a fresh new pack design and launching an oat-based RTD iced coffee
in a can; Bundaberg releasing a new 750ml sharing bottle; and Barr Flavours
introducing a Limited-Edition Candy Creations range featuring Rainbow Mix and
Fruit Burst flavours.
Driving efficiency
Driving efficiency plays an important role in delivering our strategic
priorities to improve margins and optimise returns. In 2024/25 we progressed
at pace a number of initiatives which improve efficiency and productivity.
The multi-year manufacturing capital investment at our Cumbernauld site
continued to progress to plan. This asset refresh programme is delivering
faster, more efficient production lines, enhanced dual-site production
capability for increased flexibility and resilience as well as meaningful
contributions to our net-zero roadmap through lower emissions and reduced
packaging weights. During the year we completed the upgrade of the two PET
lines based in Cumbernauld, both significant milestones. The final phase of
the programme, replacing the can line, will take place in the second half of
2025/26. Additionally, in Q4 we were pleased to have received Board approval
to progress our capital investment plan at Milton Keynes, which will run over
the next 3-5 years. This strategic investment will expand both capability
and capacity in our southern production site, allowing us to bring more volume
in-house to support organic brand growth and give greater optionality around
producing brands acquired in the future.
During the year, we completed two important elements of our strategic
programme. Firstly, we strengthened our convenience channel route to market
by transitioning from a direct to store delivery model to a broader, more
effective field sales capability. We closed Barr Direct in July 2024. Since
then, Symbol & Independent retailers have been fully serviced through our
existing Wholesale customers supported by our larger field sales team. This
provides greater coverage and influence across independent retailers.
Secondly, during H2 we completed the integration of the Boost business
(acquired December 2022) into Barr Soft Drinks, streamlining operations to
eliminate duplicated activities and allow the Boost and Rio brands to leverage
the scale and capabilities of the larger business. Both of these initiatives
were executed on time and on budget, delivering margin improvement whilst also
giving a stronger platform for future sales growth.
The insourcing of Boost and Rio product manufacturing has progressed to plan
during the year. We are now manufacturing the full Rio product range
in-house, as well as some Boost can products. Further Boost insourcing will
take place as our capital investment programme progresses and we expect to
fully complete the insourcing of Boost by the end of 2027. The synergy and
operating leverage benefits associated with insourcing are key to delivering
our margin targets.
Finally, we continue to invest in technology to drive efficiencies across our
business. In the past year we have consolidated both the Boost and FUNKIN
businesses onto our core ERP platform driving back office savings. We are
rolling out a new AI powered solution for our Field Sales teams that uses AI
image recognition to automate data collection and provide our sales reps with
selling advice. This saves time and drives distribution of our brands in
retail - this is rolling out in Q1 25/26. We remain alert to the benefits of
AI and other new technologies and will continue to invest to unlock further
opportunities.
Building trust
This year has marked further progress across our responsible business
priorities and commitments.
Our 'No Time To Waste' environmental sustainability programme continued to
drive the business towards the achievement of its environmental targets,
including our net-zero commitment. During the year we revised our
science-based targets to include MOMA and Boost and have submitted these,
along with new Forest, Land and Agriculture (FLAG) emission reduction targets
and a new commitment to no deforestation from the end of 2025, to the Science
Based Target Initiative (SBTi) for validation. We also moved to a minimum of
30% recycled PET content across the majority of our soft drinks portfolio and
MOMA now uses 100% recyclable packaging. We remain fully supportive of the
introduction of a UK Deposit Return Scheme in 2027.
We continued to support our people across various areas, both professionally
and personally. This year, we launched our new learning platform 'The
Learning Barr' aimed at encouraging continuous learning and development every
day. We are also pleased to report an increase in employee engagement, with
our annual survey showing Group-wide engagement rising to 78% (2023/24: 76%),
which is 11% above the industry average (Source: WorkL). Everything we do is
founded on promoting engagement across our teams, aligning everyone with the
journey we are on and empowering our people with the energy, leadership and
commitment needed to achieve success. Finally, during the year the business
launched its new Employer Brand, 'Let's Grow!!!', designed to help us stand
out as an employer, attract new talent and further strengthen our workforce.
Outlook
I would like to take this opportunity to thank all the teams across the
business for their hard work in delivering an excellent overall performance in
2024/25. It is a privilege to join and lead the business, working alongside
high performance teams and talented individuals.
I look back on the year as one in which we made significant progress towards
our long-term strategy of consistently delivering mid-single digit Revenue
growth, mid-teens Operating Margin and 20% Return on Capital Employed
(ROCE). We ended the year in strong financial health, with our brands and
business well-positioned for further growth. The external environment is
expected to remain challenging, driven by factors such as ongoing inflation
and the recent national insurance increase. However, we are committed to
navigating the pressures and meeting our goals. With a refreshed leadership
team and exciting commercial plans for 2025/26, I am confident that our
strategy will continue to drive growth and success in the years to come.
Euan Sutherland
CHIEF EXECUTIVE OFFICER
Financial Review
OVERVIEW
The business has delivered another set of very pleasing financial results. A
strong performance across all core financial metrics in a year where we have
upweighted investment in both revenue growth drivers and manufacturing
infrastructure to ensure we remain fit for the future.
Revenue grew 5.1% to £420.4m led by soft drinks. Within soft drinks, the
growth was broad-based across the portfolio, driven by a good balance of
pricing, product mix and volume growth. A positive performance against a
backdrop of poor weather and a challenging economic environment.
Our commitment to improve operating margin continues to be delivered from a
combination of organisational simplification, supply chain efficiency and
on-going strong cost discipline. These initiatives delivered a 130bps
improvement in adjusted operating margin* and contributed to an adjusted
profit before tax* of £58.5m, up 15.8% on the prior year (2023/24:
£50.5m). Reported profit before tax was £53.2m (2023/24: £51.3m).
Significant and sustainable cash generation continues to support a net cash
positive balance sheet. This strong balance sheet and our consistent focus on
disciplined capital allocation has enabled the business to fund investment
plans that will drive growth and productivity. £48.3m of cash generated
from operations was after a significant increase in brand investment. It funds
capital expenditure* of £19.2m and gives the confidence to recommend a 12.0%
increase in the full year dividend in line with our progressive dividend
policy. We ended the year with £63.9m net cash in bank* (2023/24:
£53.6m). This, combined with debt capacity headroom of up to 2.5x EBITDA
provides significant financial resilience as well as the flexibility for
continued organic investment and potential M&A.
Our ongoing investment in our brands, asset base and people combined with our
strong track record of delivery reinforces our confidence that the business
will continue to grow and create value in line with our strategic ambition.
ADJUSTING ITEMS
In the year to 25 January 2025, the Group incurred and separately disclosed a
net charge of £5.3m of pre-tax adjusting items (2023/24: £0.8m credit). This
charge has been included within operating expenses but has been excluded from
adjusted profit before tax*. Adjusting items comprise costs associated with
our business change programme to improve efficiency and unlock growth. They
include:
Cash cost Non cash Total charge
Route to market changes - ceasing direct to customer deliveries and moving to £2.7m £1.7m £4.4m
a field sales model
Boost integration - Integration of Boost sales, marketing and back office £0.9m · £0.9m
support into the A.G. BARR business
Total Adjusting Items £3.6m £1.7m £5.3m
Both of the programmes have been completed successfully and there are no
further costs associated with these initiatives.
In February 2025 we announced a reorganisation to simplify our business around
a single A.G. BARR organisation. The new model will result in a single,
integrated drinks business that will simplify processes, remove duplication
and better position us to meet our growth ambitions. The associated
costs of this integration are anticipated to be in the region of c.£1m.
SEGMENTAL PERFORMANCE
There are currently three reportable segments in the Group:
· Soft drinks
· Cocktail solutions
· Other
Soft drinks - Revenue up 6.4%, gross profit up 7.6%
A strong performance from the soft drinks portfolio, driven by a well-balanced
contribution from volume (+4.6%), price and mix. Distribution gains and the
deployment of improved revenue and margin initiatives continue to deliver top
and bottom-line growth.
Our 3 core soft drink brands (IRN-BRU, Rubicon, and Boost) contributed 66% of
the total business revenue and revenue increased 8.4% on the year. The soft
drink portfolio brands, which include Barr Flavours, Rio, Bundaberg, KA and
Simply Fruity, contributed 22% of the total business revenue and increased
1.5% on the year.
Cocktail solutions - Revenue down (6.1)%, gross profit down (3.9)%
FUNKIN continues to evolve into a branded, consumer focused business with
sustained growth of its ready-to-drink (RTD) cocktail range, which now
constitutes approximately half of its total revenue. However, despite strong
RTD performance, challenging market conditions led to a year-on-year decline
in on-trade revenue, resulting in a 6.1% overall revenue decrease.
In February 2025 we announced a reorganisation of our business which will see
the FUNKIN and soft drinks portfolio integrated into a one A.G. BARR
operation. A single sales force and integrated marketing model that will
support the continued delivery of our growth ambitions for all our brands.
Other - Revenue up 7.6%, gross profit up 12.5%
This segment represents our MOMA business, comprising primarily oat drinks and
porridge. Since we acquired MOMA in 2022, we have consistently invested in
the long-term potential of oat milk, which continues to grow market share and
now represents over 57% of the plant-based milk market. MOMA grew share of
this growing category driven by distribution gains within hospitality and
specialty coffee. While MOMA remains small in relative terms, there have
been significant improvements in supply chain efficiencies and the brand has
contributed to the Company-wide margin rebuild strategy at both gross and
operating margin.
MARGINS
Inflation persists on the back of global conflicts, political uncertainty and
the strength of the US dollar. With only a few exceptions, commodity costs
remained at elevated levels throughout 2024, with cost inflation particularly
evident in employment and service-related inputs. We expect 2025 to continue
the trend of moderate inflation across the cost base led by salary related
expenditure.
Gross margin* of 39.1% was, as predicted, up versus the prior year (2023/24:
38.6%). A short-term supply issue with FUNKIN RTD cans in Q2 resulted in
customer disruption and some incremental remedial costs in an otherwise
positive year for supply in terms of customer service and productivity. The
benefit of an increasingly resilient supply chain, our capital refresh
programme and the ongoing Boost insourcing initiative are anticipated to
continue to deliver margin improvements in 2025.
Underlying overhead costs, which exclude one-off costs treated as adjusting
items, increased by 2.3%. We continue to invest in our brands and our
people. We invested in upweighted marketing, a core pillar of our growth
strategy, and additional field sales resources to support our route to market
(RTM) strategy. The higher levels of investment in those areas more than
offset productivity and efficiency gains from strategic projects.
At 13.6%, adjusted operating margin* was 130 basis points above the prior
period (2023/24: 12.3%). We remain on track with our margin rebuild plans
and our commitment to delivering a sustainable 14.5-15.0% operating margin by
the end of 2025/26. Reported operating margin was 12.3% (2023/24: 12.5%) due
to the impact of one-off adjusting items which resulted in a £5.3m charge in
the current year (prior year £0.8m credit).
INTEREST
The Group remained net cash positive throughout 2024/25, with surplus cash
held on rolling short-term deposits. The resulting interest income of £2.0m
offset finance charges of £0.5m relating to periodic overdraft charges and
lease interest costs under IFRS 16.
TAXATION
The reported effective tax rate for the year ended 25 January 2025 was 25.4%
(2023/24: 25.0%). The standard rate of corporation tax applied to reported
profit is 25.0% (2023/24: 24.0%). The effective tax rate is higher than the
standard applicable tax rate on account of a small number of prior year tax
adjustments and certain costs being non-deductible tax expenses. Deferred
tax was calculated at 25% (2023/24: 25%).
EARNINGS PER SHARE (EPS)
Adjusted basic EPS* for the year was 39.77p, an increase of 17.4% on the prior
year. This reflects the strong profit performance, with a slightly smaller
share base offsetting the modest increase in effective tax rate. Basic
reported EPS was 35.81p, an increase of 3.5% on last year. Based on a
diluted weighted average of 112,050,469 shares, diluted EPS was 35.43p
(2023/24: 34.24p).
DIVIDENDS
The Group's dividend policy remains unchanged. We aim to deliver a progressive
and sustainable dividend that has regard to performance trends including
revenue, profit after tax and cash, and is in line with our target dividend
cover and payout ratios.
In line with this framework, and following the interim dividend of 3.10p per
share paid in November 2024, the Board is recommending a final dividend for
the period of 13.76p. This will bring the full year dividend to 16.86p per
share (2023/24: 15.05p per share) which provides 2.1 times dividend cover and
delivers a payout ratio of 48%. Subject to approval by shareholders at the
AGM in May, the final dividend will be paid to holders of ordinary shares on
the register as of 9 May 2025 with an ex-dividend date of 8 May 2025.
BALANCE SHEET
Disciplined capital allocation is a key component of our business strategy as
we target a consistent ROCE above 20%. During the year, the Board reviewed
our strategy in the context of its prevailing risk appetite, current capital
programme and our strategic plans. We continue to believe that a strong
balance sheet that supports organic growth, M&A opportunities and an
ongoing progressive dividend is the right strategy for A.G. BARR given our
present plans.
The Group remains financially strong, with over £63m net cash at bank*, no
material trade debt issues, appropriate inventory levels, a defined benefit
pension surplus and a £24.9m increase in the net asset base to £317.6m.
Together with strong growth in adjusted operating profit*, these deliver a
healthy and improving adjusted Return on Capital Employed* of 20.1%.
The Board retains a medium-term 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 - 2.5x EBITDA.
CASH FLOW
Our cash performance remains robust, with cash generated from operations of
£57.6m (2023/24: £60.2m) and a profit to cash conversion ratio* of 82.6%
(2023/24: 96.0%), driven by a continued focus on disciplined cash management.
Overall working capital impact on cashflow has been an outflow of almost
£6.7m. Receivables increased £13.0m as a result of good Q4 trading and the
timing of specific customer payments, whilst inventories were lower as a
result of higher stocks in the prior year, associated with Cumbernauld line
downtime relating to the capex programme.
We remain committed to internal manufacturing when scale and capabilities
permit, and recognise the value of a well-invested asset base. Cash capital
expenditure* of £19.2m (2023/24: £17.8m) was focused on our multi-year asset
refresh programme at our Cumbernauld site. This programme has already
installed and commissioned two refreshed PET lines and is currently focused on
the replacement of our Cumbernauld canning capability with a faster, more
efficient can line due to be commissioned in early 2026.
Our capital expenditure programme is part of an overall, longer term, supply
chain optimisation plan that aims to invest in production capacity, capability
and sustainability to support future growth. The programme is a critical
component of our Boost/Rio production insourcing initiative which, in turn, is
an important element of our margin rebuild strategy. While the Boost
insourcing will be largely complete by 2027, the capital programme will
continue over the foreseeable future, with anticipated capex averaging
£25m-£30m p.a. over the medium term.
TREASURY AND COMMODITY 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 debt, commodity 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 Group actively manages commodity pricing risk and
where commercially appropriate will enter into fixed price supply contracts
with suppliers to reduce risk.
As at 25 January 2025, the Group had £42.5m of funds held on short-term,
interest earning deposit with two relationship banks. In addition to the
Group's cash position, the Group had £20.0m of unutilised committed debt
facilities, consisting of a revolving credit facility with our principal
relationship bank. This expires in February 2026 and, at this point, we have
no plans to renew it. Our funding requirements and facilities are
continually reviewed to ensure they remain appropriate, providing a balance of
security and optionality.
ACCOUNTING POLICIES
The Group's financial statements have been prepared in accordance with
International Financial Reporting Standards and the 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.
PENSIONS
The Group continues to operate the A.G. BARR p.l.c. (2008) Pension and Life
Assurance Scheme. This is a defined benefit scheme based on final salary
which has been closed to new entrants since 5 April 2002 and closed to future
accrual for members in May 2016. Existing and new employees have been
invited to join an outsourced defined contribution scheme.
The pension scheme remains well funded and in surplus. The scheme's
triennial valuation as at April 2023 identified a £3.2m surplus on a
technical provisions basis and indicated that the scheme could be expected to
reach self-sufficiency by 2032, with no additional cash contributions
required. During the year, Company contributions of £3.3m were made as part
of the Company's long term de-risking strategy.
On an IAS 19 valuation basis, which is determined before the benefit of the
Central Asset Reserve (CAR) funding arrangement, the surplus of £3.2m as at
28 January 2024 improved to a surplus of £6.8m as at the balance sheet
date. The scheme has a long-established financial de-risking strategy that
includes pensioner buy-in policies and asset hedging. The Group continues to
work proactively with the Pension Trustee to further de-risk the pension
liabilities and secure the commitments to employee benefits as part of the
Group's ongoing strategic risk management.
------
This year's strong financial performance demonstrates the rigorous execution
of our growth strategy. In an environment that remains challenging, we
believe that our clear strategy, the strength of our brands and our well
invested asset base underpin the growth potential of the business. We remain
confident in our ability to deliver continued growth in revenue, and operating
margin as well as a strong return on capital employed in the years ahead.
Stuart Lorimer
CHIEF FINANCE AND OPERATING OFFICER
* Items marked with an asterisk are non-GAAP measures. Definitions and
relevant reconciliations are provided in the Glossary
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 25 JANUARY 2025
2025 2024
£m £m
Revenue 420.4 400.0
Cost of sales (256.1) (245.8)
Gross profit 164.3 154.2
Operating expenses (112.6) (104.1)
Operating profit 51.7 50.1
Finance income 2.0 1.4
Finance costs (0.5) (0.2)
Profit before tax 53.2 51.3
Tax on profit (13.5) (12.8)
Profit attributable to equity holders 39.7 38.5
Earnings per share (pence)
Basic earnings per share 35.81 34.59
Diluted earnings per share 35.43 34.24
STATEMENTS OF FINANCIAL POSITION AS AT 25 JANUARY 2025
2025 2024
£m £m
Non-current assets
Intangible assets 129.2 130.4
Property, plant and equipment 118.0 109.0
Right-of-use assets 5.0 5.2
Retirement benefit surplus 6.8 3.2
259.0 247.8
Current assets
Inventories 31.7 36.5
Trade and other receivables 76.8 63.8
Derivative financial instruments 0.2 -
Current tax asset 0.4 -
Available for sale assets 0.9 -
Short-term investments 42.5 20.0
Cash and cash equivalents 21.4 33.6
173.9 153.9
Total assets 432.9 401.7
Current liabilities
Trade and other payables 73.2 70.3
Derivative financial instruments 0.3 0.3
Lease liabilities 1.8 1.8
Provisions 1.1 0.5
Current tax liabilities - 0.7
76.4 73.6
Non-current liabilities
Deferred tax liabilities 36.0 32.3
Lease liabilities 2.8 3.1
Derivative financial instruments 0.1 -
38.9 35.4
Capital and reserves
Share capital 4.7 4.7
Share premium account 0.9 0.9
Share options reserve 3.6 4.0
Other reserves - (0.1)
Retained earnings 308.4 283.2
317.6 292.7
Total equity and liabilities 432.9 401.7
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 25 JANUARY 2025
2025 2024
£m £m
Profit for the year 39.7 38.5
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit pension plans 0.1 0.7
Deferred tax movements on pensions 1.5 (0.2)
Items that will be or have been reclassified to profit or loss
Gain/(loss) arising on cash flow hedges during the period 0.1 (0.3)
Deferred tax movements on items above - 0.1
Other comprehensive income for the year, net of tax 1.7 0.3
Total comprehensive income attributable to equity holders of the parent 41.4 38.8
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 25 JANUARY 2025
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 items taken direct to reserves - - 0.1 - - 0.1
Dividends paid - - - - (17.2) (17.2)
At 25 January 2025 4.7 0.9 3.6 - 308.4 317.6
Share capital Share premium account Share options reserve Other reserves Retained earnings Total
£m £m £m £m £m £m
At 29 January 2023 4.7 0.9 3.4 0.1 259.7 268.8
Profit for the year - - - - 38.5 38.5
Other comprehensive (expense)/income - - - (0.2) 0.5 0.3
Total comprehensive (expense)/income for the year - - - (0.2) 39.0 38.8
Company shares purchased for use by employee benefit trusts - - - - (3.6) (3.6)
Proceeds on disposal of shares by employee benefit trusts - - - - 1.3 1.3
Recognition of share-based payment costs - - 2.1 - - 2.1
Transfer of reserve on share award - - (1.6) - 1.5 (0.1)
Deferred tax on items taken direct to reserves - - 0.1 - - 0.1
Dividends paid - - - - (14.7) (14.7)
At 28 January 2024 4.7 0.9 4.0 (0.1) 283.2 292.7
CASH FLOW STATEMENT FOR THE YEAR ENDFED 25 JANUARY 2025
2025 2024
£m £m
Operating activities
Profit for the period before tax 53.2 51.3
Adjustments for:
Interest and dividends receivable (2.0) (1.4)
Interest payable 0.5 0.2
Impairment of assets classified as available for sale 1.6 -
Impairment of investment in associate - 0.7
Write off of loans and receivables - 1.5
Contingent consideration - (0.8)
Depreciation of property, plant and equipment 11.0 11.2
Amortisation of intangible assets 1.2 1.1
Share-based payment costs 2.4 2.1
Gain on sale of property, plant and equipment (0.3) (0.5)
Operating cash flows before movements in working capital 67.6 65.4
Decrease/(increase) in inventories 4.8 (1.8)
Increase in receivables (13.0) (3.4)
Increase in payables 1.5 -
Difference between employer pension contributions and amounts recognised in (3.3) -
the income statement
Cash generated by operations 57.6 60.2
Tax paid (9.3) (11.7)
Net cash from operating activities 48.3 48.5
Investing activities
Acquisition of subsidiary (net of cash acquired) - (12.3)
Purchase of property, plant and equipment (19.2) (17.8)
Proceeds on sale of property, plant and equipment 1.0 0.6
Funds placed on fixed term deposit (90.5) (20.0)
Funds returned from fixed term deposit 68.0 40.0
Interest received 1.4 1.4
Net cash used in investing activities (39.3) (8.1)
Financing activities
Loans made - 5.0
Loans repaid - (5.7)
Lease payments (2.1) (1.9)
Purchase of Company shares by employee benefit trusts (2.7) (3.6)
Proceeds from disposal of Company shares by employee benefit trusts 1.0 1.3
Dividends paid (17.2) (14.7)
Interest paid (0.2) (0.1)
Net cash used in financing activities (21.2) (19.7)
Net (decrease)/increase in cash and cash equivalents (12.2) 20.7
Cash and cash equivalents at beginning of year 33.6 12.9
Cash and cash equivalents at end of year 21.4 33.6
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 52 weeks ended 25 January 2025 (prior
financial year 52 weeks ended 28 January 2024).
Basis of preparation
The financial information for the year ended 25 January 2025 contained in this
news release was approved by the Board on 25 March 2025. 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 29
January 2024. 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 28 January 2024 have been
delivered to the Registrar of Companies. Statutory financial statements for
the year ended 25 January 2025, 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
volume loss would have a negative impact on Group profitability, however the
scenario modelling indicates that the Group would maintain sufficient
liquidity headroom without 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 has £20m of committed and unutilised credit facilities providing
the business with a secure funding platform. The facility expires in February
2026 and we currently have no plans to renew it. The directors believe the
Group could access short-term credit facilities if needed.
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 standards:
· Classification of Liabilities as Current or Non-current and
Non-current liabilities with covenants - Amendment to IAS 1;
· Lease liability in sale and leaseback - Amendments to IFRS 16;
and
· Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7.
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 25 January 2025
reporting periods and have not been early adopted by the Group. These
standards, amendments or interpretations are not expected to have a material
impact on the entity in the current or future reporting periods or on
foreseeable future transactions.
2. Segment reporting
The Board and senior executives have been identified as the Group's chief
operating decision-makers, who review the Group's internal reporting in order
to assess performance and allocate resources.
The performance of the operating segments is assessed by reference to their
gross profit.
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
Soft drinks Cocktail solutions Other Total
Year ended 28 January 2024 £m £m £m £m
Total revenue 346.6 42.9 10.5 400.0
Gross profit 135.6 15.4 3.2 154.2
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 in revenues arising from the above segments are revenues of
approximately £78.0m, which arose from sales to the Group's largest customer
(2024: £68.0m). No other single customers contributed 10% or more to the
Group's revenue in either 2024 or 2025.
All of the segments included within "Soft drinks" and "Cocktail solutions"
meet the aggregation criteria set out in IFRS 8 Operating Segments.
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.
2025 2024
Revenue £m £m
UK 398.4 383.0
Rest of the world 22.0 17.0
420.4 400.0
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
2025 2024
£m £m
Charge/(credit) to the income statement
Current tax on profits for the year 9.7 11.5
Adjustments in respect of prior years (1.5) 0.2
Total current tax expense 8.2 11.7
Deferred tax
Origination and reversal of:
Temporary differences 4.3 1.4
Adjustments in respect of prior years 1.0 (0.3)
Total deferred tax expense 5.3 1.1
Total tax expense 13.5 12.8
In addition to the above movements in deferred tax, a deferred tax debit of
£1.5m (2024: credit of £0.1m) has been recognised in other comprehensive
income and a debit of £0.1m (2024: 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:
2025 2025 2024 2024
£m % £m %
Profit before tax 53.2 51.3
Tax at 25.0% (2024: 24.0%) 13.3 25.0 12.3 24.0
Tax effects of:
Items that are not deductible in determining taxable profit 0.7 1.3 0.6 1.2
Current tax adjustment in respect of prior years (1.5) (2.8) 0.2 0.4
Deferred tax adjustment in respect of prior years 1.0 1.9 (0.3) (0.6)
Total tax expense 13.5 25.4 12.8 25.0
The weighted average tax rate was 25.4% (2024: 25.0%).
The standard rate of corporation tax applied to reported profit is 25% (2024:
24.03%). The applicable rate has changed following the UK Government's
announcement that the corporation tax rate would increase from 19% to 25%
effective from 1 April 2023.
4. Dividends
Dividends paid in the financial year were as follows:
2025 2024 2025 2024
per share per share £m £m
Final dividend 12.40 p 10.60 p 13.8 11.8
Interim dividend 3.10 p 2.65 p 3.4 2.9
15.50 p 13.25 p 17.2 14.7
The directors have proposed a final dividend in respect of the year ended 25
January 2025 of 13.76p per share. It will be paid on 6 June 2025 to all
shareholders who are on the Register of Members on 9 May 2025.
Dividends payable in respect of the financial year were as follows:
2025 2024
per share per share
Final dividend 13.76 p 12.40 p
Interim dividend 3.10 p 2.65 p
Total dividend payable 16.86 p 15.05 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 25 January 2025. 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 a non-GAAP measure calculated by dividing
adjusted profit attributable to equity holders by the weighted average number
of shares in issue.
Adjusted invested capital is a non-GAAP measure and is calculated as invested
capital adjusted to reflect the balance sheet impact of the adjusting items in
the income statement.
Adjusted operating margin is a non-GAAP measure and is calculated by dividing
adjusted operating profit by revenue.
Adjusted operating profit is a non-GAAP measure calculated as operating profit
after adjusting items.
Adjusted profit before tax is non-GAAP measure 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 a non-GAAP measure and
is defined as adjusted profit before tax divided by adjusted invested capital.
Cash capital expenditure is a non-GAAP measure and is defined as the cash
outflow on purchases of property, plant and equipment, and is disclosed in the
cash flow statement.
EBITDA is a non-GAAP measure and is defined as operating profit before
depreciation and amortisation.
Full year dividend is a non-GAAP measure and is defined as the total dividends
declared for the financial year.
Gross margin is a non-GAAP measure calculated by dividing gross profit by
revenue.
Net cash at bank is a non-GAAP measure and is defined as the net of cash and
cash equivalents plus short-term investments less loans and other borrowings
as shown in the statement of financial position.
Operating margin is a non-GAAP measure calculated by dividing operating profit
by revenue.
Profit conversion to cash ratio is a non-GAAP measure and is defined as net
cash from operating activities divided by adjusted profit before tax.
Return on capital employed (ROCE) is a non-GAAP measure and is defined as
reported profit before tax as a percentage of invested capital. Invested
capital is a non-GAAP measure defined as period end non-current plus current
assets less current liabilities excluding all balances relating to any
provisions, financial instruments, interest-bearing liabilities and cash or
cash equivalents.
Revenue growth is a non-GAAP measure calculated as the difference in revenue
between two reporting periods divided by the revenue of the earlier reporting
period.
Adjusted Consolidated Income Statements Year ended 25 January 2025 Year ended 28 January 2024
Reported Business change projects Adjusted Reported Boost Adjusted
earn-out
accrual
write
back
£m £m £m £m £m £m
Revenue 420.4 - 420.4 400.0 - 400.0
Cost of sales (256.1) - (256.1) (245.8) - (245.8)
Gross profit 164.3 - 164.3 154.2 - 154.2
Operating expenses (112.6) 5.3 (107.3) (104.1) (0.8) (104.9)
Operating profit 51.7 5.3 57.0 50.1 (0.8) 49.3
Finance income 2.0 - 2.0 1.4 - 1.4
Finance costs (0.5) - (0.5) (0.2) - (0.2)
Profit before tax 53.2 5.3 58.5 51.3 (0.8) 50.5
Tax on profit (13.5) (0.9) (14.4) (12.8) - (12.8)
Profit for the period 39.7 4.4 44.1 38.5 (0.8) 37.7
Adjusting entries:
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.
Boost earn-out reversal - certain conditions associated with the Boost
earn-out were not met and as such the earn-out was not payable in its previous
form but was incorporated into employee reward incentives.
Reconciliation of non-GAAP measures
Adjusted basic EPS 2025 2024
Adjusted profit attributable to equity holders of the Company £m 44.1 37.7
Weighted average number of shares in issue 110,874,571 111,289,068
Adjusted basic EPS (p) 39.77 33.88
Full year dividend 2024 2023
pence
pence
Interim dividend paid 3.10 2.65
Final dividend declared 13.76 12.40
Full year dividend 16.86 15.05
Gross margin 2025 2024
£m
£m
Revenue 420.4 400.0
Gross profit 164.3 154.2
Gross margin 39.1% 38.6%
Net cash at bank 2025 2024
£m
£m
Cash and cash equivalents 21.4 33.6
Short-term investments 42.5 20.0
Net cash at bank 63.9 53.6
Operating margin 2025 2024
£m
£m
Revenue 420.4 400.0
Reported operating profit 51.7 50.1
Operating margin 12.3% 12.5%
Adjusted operating margin 2025 2024
£m
£m
Revenue 420.4 400.0
Adjusted operating profit 57.0 49.3
Adjusted operating margin 13.6% 12.3%
Profit conversion to cash ratio 2025 2024
£m
£m
Net cash from operating activities 48.3 48.5
Adjusted profit before tax 58.5 50.5
Profit conversion to cash ratio 82.6% 96.0%
ROCE 2025 2024
£m
£m
Profit before tax 53.2 51.3
Intangible assets 129.2 130.4
Property, plant and equipment 118.0 109.0
Right-of-use assets 5.0 5.2
Inventories 31.7 36.5
Trade and other receivables 76.8 63.8
Current tax 0.4 (0.7)
Trade and other payables (73.2) (70.3)
Invested capital 287.9 273.9
ROCE 18.5% 18.7%
Adjusted ROCE 2025 2024
£m
£m
Adjusted profit before tax 58.5 50.5
Intangible assets 129.2 130.4
Property, plant and equipment 121.2 109.0
Right-of-use assets 5.0 5.2
Inventories 31.7 36.5
Trade and other receivables 76.8 63.8
Current tax 0.4 (0.7)
Trade and other payables (73.2) (70.3)
Adjusted invested capital 291.1 273.9
Adjusted ROCE 20.1% 18.4%
Adjusted invested capital 2025 2024
£m
£m
Invested capital 287.9 273.9
Assets held as available for sale returned to property, plant and equipment 3.2 -
Adjusted invested capital 291.1 273.9
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