REG - Barr(A.G.) PLC - Trading Update

A G BarrAnnouncement

28/01/2025 07:00

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RNS Number : 8582U  Barr(A.G.) PLC  28 January 2025

IMMEDIATE RELEASE
 
28 January 2025

A.G. BARR p.l.c

Trading Update

 

 Sustained revenue growth and double digit profit growth

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

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

Full year adjusted operating margin is expected to show strong improvement to
c.13.5% (2023/24:12.3%), helping to drive double digit profit(1) growth.

Highlights

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

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

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

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

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

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

 

Euan Sutherland, Chief Executive, commented:

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

We are committed to consistent long-term revenue growth and have confidence in
further margin improvement as per our previous guidance.  Our expectations
for 2025/26 are unchanged and in line with market expectations(2)."

Future Events

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

 

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

Cumbernauld 23 April 2025

Milton Keynes 15 May 2025

Notes

(1) - adjusted profit before tax

(2) - Analyst consensus:

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

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

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

 

For more information, please contact :

A.G. BARR
 
 Instinctif Partners

0330 390
3900
                                   020 7457
2010/05

Euan Sutherland Chief Executive
                           Justine Warren

Stuart Lorimer, Finance Director
                            Matthew Smallwood

 
 
            Hannah Scott

 

 

 

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