A.G. Barr Plc (LSE:BAG) reported a 20.1% increase in adjusted pre-tax profit for the first half of the year, driven by improved margins and robust demand for its Boost brand.
For the 26 weeks ending July 26, the Scottish soft drinks producer posted an adjusted pre-tax profit of £35.2 million, up from £29.3 million a year earlier. Adjusted operating margins expanded to 15% from 13%, while revenue grew 3.1% to £228.1 million compared with £221.3 million in the same period in 2024.
Statutory profit before tax rose to £35.2 million from £24.9 million, and statutory basic earnings per share increased to 24.90p from 16.88p. The board declared an interim dividend of 3.44p per share, up 11% from 3.10p, payable on November 7 to shareholders registered by October 10.
The company said growth was largely driven by its soft drinks portfolio, which recorded a 3.3% sales increase. Boost achieved double-digit revenue growth, mainly via wholesale channels.
IRN-BRU sales remained stable year-on-year, with new marketing campaigns and a limited-edition flavor planned for H2. Rubicon posted modest gains after launching Rubicon Spring Vits, while cocktail solutions revenue declined 5.2% to £20 million. Other revenue rose 26.8% to £7.1 million.
During the period, A.G. Barr acquired a 50.1% stake in functional drinks business Innate-Essence Ltd and completed the sale of the Strathmore water brand.
The company ended the period with net cash at £41.3 million, compared with £43.7 million last year, reflecting the acquisition. Net cash generated from operating activities increased to £15.7 million from £13 million a year earlier.
Chairman Mark Allen and CEO Euan Sutherland said the company entered H2 with strong momentum, supported by marketing initiatives and product innovation. They reaffirmed full-year profit guidance.
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