A.G. Barr (LSE:BAG) reported an 8% increase in first-half revenue to approximately £246 million, supported by strong performances from its core brands and contributions from recently acquired businesses. Growth came despite an estimated £10 million impact from internal supply chain disruption and manufacturing constraints involving third-party partners.
Management said these operational challenges are expected to ease over the remainder of the year and continues to forecast double-digit revenue growth for the full year. The company also expects operating margins to strengthen in the second half, supported by completed business integrations, investment in manufacturing capabilities and continued gains in market share.
IRN-BRU, Rubicon and Boost all outperformed the wider UK soft drinks market during the period. IRN-BRU and Rubicon benefited from successful brand refreshes and new product launches, while Boost delivered double-digit growth through expanded grocery distribution and increasing demand for healthier hydration products. Performance was partly offset by softer trading at FUNKIN and Barr Brands, although management said early benefits from integrating Fentimans and Frobishers, together with the transfer of Boost Sports production in-house, are expected to improve efficiency and profitability over time.
The company’s investment outlook remains supported by consistent revenue growth, healthy profitability and historically low levels of debt. A relatively modest valuation and an attractive dividend also strengthen the investment case. However, recent technical indicators have been less supportive, with the shares trading below longer-term moving averages and a negative MACD signal. Softer recent free cash flow and a higher level of debt during 2026 also temper the overall outlook.
More about A.G. Barr
A.G. Barr plc is a UK-based beverage manufacturer with a portfolio of well-known soft drinks brands, including IRN-BRU, Rubicon and Boost. The company supplies products across the UK through major grocery retailers, convenience stores and foodservice channels, while continuing to expand through innovation and strategic acquisitions.
Recent additions to the portfolio, including Fentimans and Frobishers, have broadened the company’s presence across premium soft drinks and juice categories. Alongside ongoing investment in manufacturing and distribution, A.G. Barr aims to strengthen its position in the UK beverages market through product development, operational efficiency and brand expansion.
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