AG Barr: Why figures are fizzing at iconic Irn-Bru maker

The Cumbernauld-headquartered group said it saw particularly strong sales of energy and sports drinks over the past six months.

Chief executive Euan Sutherland said the business has made “good progress” in setting itself up for long-term growth.

Barr told investors that revenues had risen 3.1 per cent to £228.1 million during the 26 weeks to July 26, compared with the same period a year earlier. Statutory pre-tax profits jumped by 41.4 per cent to £35.2m.

The group said revenue growth was largely driven by “pricing actions taken in the first quarter”, which temporarily impacted sales volumes, although these picked up later in the half. Demand for sports drinks, energy drinks and water have helped support growth despite “subdued” consumer confidence, Barr noted.

It also highlighted positive sales for the Boost energy drink brand it bought in 2022, which recorded double-digit growth.

The company also said it has seen growth in health-focused functional drinks across the UK, and aims to expand in this area following its deal to buy a majority stake in Innate-Essence, the parent firm of The Turmeric Co, in July.

Sutherland said: “I am pleased to report strong first-half results that reflect continued delivery against our strategic priorities and positive momentum across the business.

“We are making good progress putting in place the building blocks of long-term growth. We are investing in our brands, operations and people to build a stronger, scalable, more profitable business.”

The group also held firm on its financial targets for the current year.

Mark Crouch, market analyst for eToro, said: “In 2025, AG Barr shares climbed to their highest level in six years after the company delivered a solid interim performance, marked by strong profit growth, margin expansion and continued strategic focus.

“The company’s thirst for innovation continues, acquiring a majority stake in functional beverage start-up Innate-Essence, while exiting Strathmore to sharpen its capital allocation. Even post-acquisition, a robust £41.3m net cash position underscores Barr’s strong, cash-generative model.

“With an 11 per cent dividend hike, shareholders have every reason to raise a glass. With the effects of the pandemic now a distant memory, Barr is serving up brilliantly strong numbers. And with a brand-led, margin-savvy portfolio, now tapping into higher-growth wellness and energy categories, it keeps this stock refreshingly attractive.”

John Moore, wealth manager at RBC Brewin Dolphin, noted: “AG Barr has delivered a sparkling set of results, showing robust sales growth especially within the soft drinks business.

“We’ve seen some acceleration of earnings growth and cash generation helped by a favourable summer combined with contributions from margin initiatives kick in. AG Barr has a lot of qualities as a business and continues to invest in its operations - the business has a strong balance sheet and is well placed to add any potential accretive bolt-on acquisitions.”

The solid half-year performance had been flagged in a trading update.