Skip to content
Search
AI Powered
Latest Stories

A.G. Barr expects strong revenue and double-digit profit growth as core brands sizzle

A.G. Barr expects strong revenue and double-digit profit growth as core brands sizzle

A.G. Barr, the beverage company behind brands like IRN-BRU, Rubicon, Boost, and FUNKIN, has announced a sparkling trading update for the full year ending January 25, 2025, anticipating sustained revenue growth and double-digit profit growth.

A.G. Barr expects revenue of approximately £420 million for the 2024/25 fiscal year, a 5 per cent increase from the previous year's £400 million. The company also anticipates a strong improvement in its adjusted operating margin, which is projected to rise to 13.5 per cent, up from 12.3 per cent in 2023/24. This margin expansion has driven double-digit growth in adjusted profit before tax, reflecting the company’s focus on operational efficiency and strategic investments.


“A.G. Barr is in line to deliver another year of strong top line growth, margin improvement and cash generation. These headline metrics highlight excellent progress towards our long-term financial goals,” Euan Sutherland, chief executive, commented. “We have sustained brand momentum despite the well-trailed wider market pressures, and continue to make good progress towards our margin target.”

The company’s core soft drinks brands—IRN-BRU, Rubicon, and Boost—all delivered strong performances. Rubicon stood out with another year of double-digit revenue growth, while IRN-BRU solidified its position as one of the top five carbonates in the UK. Boost, which shifted its strategy to focus on value over volume, saw a notable improvement in profitability in the second half of the year.

FUNKIN's ready-to-drink business also saw rapid growth, driven by increased retail distribution and innovative new products. This growth helped offset ongoing difficulties in the on-premise market, the company said.

Convenience channel focus

A.G. Barr also announced the successful completion of strategic projects to strengthen its convenience channel route to market and integrate the Boost business. These initiatives are expected to generate significant commercial and operational synergies, although they did incur a one-off cost of approximately £5 million in 2024/25.

The company continues to invest in its supply chain, with capital expenditure of around £19 million this year. This investment includes a new small format PET line and an upgraded large format PET line at its Cumbernauld site, boosting capacity and capabilities.

“We are committed to consistent long-term revenue growth and have confidence in further margin improvement as per our previous guidance,” Sutherland said, adding that the company’s outlook for 2025/26 is in line with market expectations – revenue growing to £439.4m; adjusted profit before tax at £65.0m and adjusted operating margin rising to 14.5 per cent.

The company will report full year results for 2024/25 year on 25 March.

More for you

Heineken Sales

Heineken 2024 sales see slight decline

Photo: iStock

Heineken's 2024 sales see slight decline despite volume growth

Dutch brewer Heineken on Wednesday reported a slight dip in sales for last year, mainly due to currency fluctuations, although overall beer volumes increased.

The world's second biggest brewer after AB InBev said revenue in 2024 came in at €36 billion (£30bn), compared to the €36.4bn it made the year before.

Keep ReadingShow less
Retailers are set to face a "perfect storm of additional costs".300,000 Jobs at Risk

Retailers are set to face a "perfect storm of additional costs".

Getty Images (Photo by Euan Cherry/Getty Images)

Retailers warn Chancellor of high street crisis ahead

Retailers are set to face a "perfect storm of additional costs" as 300,000 jobs will go by 2028 due to the implication of recent budget, retailers have warned Chancellor Rachel Reeves.

Under a new body Retail Jobs Alliance (RJA), seven of Britain’s biggest retail chains have united to Reeves that her tax hikes will lead to even more devastating High Street closures and job losses.

Keep ReadingShow less
​New Co-op report reveals in disparity in apprenticeship scheme by small business

New Co-op report reveals in disparity in apprentices

iStock image

Small businesses lag in offering apprenticeships

Small businesses are "18 times less likely" to offer an apprenticeship scheme as compared to large businesses, a recent report has claimed, adding that some small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.

Co-op in a report released on Monday (10) points out how more than a third (38 per cent) of school leavers face a lack of apprenticeship opportunities in their local area.

Keep ReadingShow less
Retail sales in January 2025

Retail sales in January 2025

iStock image

Retail sales surge in January despite stormy weather

January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).

According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.

Keep ReadingShow less
​Kash Retail donates £1,000 through Nisa’s charity to support Darlington Pride Festival

Kash Retail donates £1,000 through Nisa’s charity.

NISA

KASH Retail joins forces with Nisa charity to support Darlington Pride Festival

KASH Retail, operator of Nisa Local Fenby Avenue in Darlington, has generously donated £1,000 through Nisa’s Making a Difference Locally (MADL) Pride Pot to support this year’s Darlington Pride Festival.

The donation, inspired by store team member Gavin Morrison, who performs as drag queen Georgina Sparks, will provide a valuable boost to the event, helping organisers deliver an inclusive and vibrant celebration for the local community.

Keep ReadingShow less