AG Barr hails 'pleasing' performance from core brands as FY profits rise

(Sharecast News) - Irn-Bru maker maker AG Barr posted a jump in full-year profit on Tuesday as revenue rose thanks to a solid performance from its core brands. In the year to the end of January 2026, adjusted pre-tax profit rose 12.5% to £65.8m, on revenue of £437.3m, up 4% on the previous year.

The drinks maker said the revenue increase was "value-led" and reflected "pleasing" performances and growing momentum in the core soft drinks brands of Irn-Bru, Rubicon and Boost.

The adjusted operating margin increased by 120 basis points to 14.8%, led by efficiency and strong cost discipline, the company said.

AG Barr declared a final dividend of 15.27p per share, taking the total dividend for the year to 18.71p, up 11% on the prior year.

The company said it entered FY26/27 with good momentum and its soft drinks portfolio is expected to be supported by expanded distribution, targeted brand refreshes and multiple new product launches.

It also said the integration of recent acquisitions - Frobishers Juices and Fentimans - is well underway and progressing to plan, leaving the group "well positioned to realise targeted operational efficiencies from H2 and in the coming years".

Chief executive Euan Sutherland said: "This was a year of significant strategic progress in which we also delivered on our targeted financial metrics. We have strengthened the foundations of the business and stepped up our investment in brand development, commercial capability and our operations to ensure we can consistently sustain high levels of performance. These actions, supplemented by a more meaningful M&A strategy, support our ambition to deliver our target of sustainable, consistent top and bottom line growth.

"We entered FY26/27 with good momentum and clear priorities, and expect to deliver a year of low double digit percentage revenue growth supported by our recent acquisitions. Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business. Importantly, we are pursuing this ambition without changing our core business model, and with a continued disciplined focus on margin, ROCE and shareholder returns."

At 0940 BST, the shares were up 6.9% at 659.43p.

Russ Mould, investment director at AJ Bell, said: "There was some real fizz behind Irn Bru maker AG Barr's latest results. Revenue growth was solid but what really impressed was the improved profitability, with margins expanding significantly.

"This was supported by an exit from the less profitable water segment with Barr using acquisitions to expand its footprint in energy and wellness drinks.

"Management signalled real confidence in the outlook, despite the uncertain consumer backdrop, with a double-digit increase in the dividend.

"A favourite drink is the kind of affordable treat which people can continue to justify even when their capacity to spend on bigger ticket items is constrained."

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