A.G. Barr (LSE:BAG) delivered full-year results for the year ended 31 January 2026 that broadly met market expectations, as revenue increased by around 4% to £437m and adjusted operating margins widened by approximately 110 basis points to 14.7%, underpinning double-digit growth in profits. Performance was supported by steady top-line momentum and improved operational efficiency across the group.
The company reported continued progress against its strategic objectives, with increased investment in innovation leading to several new product launches from January 2026. Ongoing spend on manufacturing capacity and capabilities also remained a priority. From a brand perspective, marketing activity helped return IRN-BRU to modest growth in the second half of the year, while Rubicon and Boost delivered resilient performances despite softer trading conditions at Funkin.
During the period, A.G. Barr strengthened its exposure to the adult soft drinks category through targeted acquisitions. The group purchased premium juice brand Frobishers for £13m close to year-end and completed the approximately £38m acquisition of botanical soft drinks and mixers specialist Fentimans shortly after the reporting period. Both transactions were funded through a combination of cash and debt, with management expecting cost synergies and margin enhancement as integration advances through FY26/27.
Looking ahead, management said the group enters the new financial year with solid momentum, supported by a strong pipeline of brand initiatives, including refreshed designs for IRN-BRU and Rubicon. The company reiterated its focus on driving efficiency, protecting margins and enhancing shareholder returns.
While recent financial performance and corporate developments have been positive, these are partially offset by weaker technical indicators. The shares are viewed as fairly valued, with the dividend yield contributing to overall appeal. The absence of an earnings call means no additional insight from management commentary was available.
More about AG Barr
A.G. Barr is a UK-based multi-beverage producer best known for its IRN-BRU, Rubicon and Boost brands. The group operates across the soft drinks and mixers market, with an increasing emphasis on adult soft drinks. It serves a broad UK consumer base through ongoing brand innovation, channel expansion and continued investment in manufacturing and supply-chain infrastructure to support its portfolio of established and emerging drinks brands.
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