AG Barr has reported significant growth in sales and profits for the first half of 2024.
- The company’s pre-tax profit rose by 8.5%, reaching £29.3m.
- Overall sales increased by 5.2%, totalling £221.3m, with soft drinks driving this growth.
- Rubicon, in particular, saw double-digit growth in both volume and value.
- AG Barr remains confident in continuing its growth trajectory.
In the opening half of 2024, AG Barr has experienced a notable increase in both sales and profits, attributed primarily to its robust performance in the soft drinks segment. Adjusted pre-tax profit rose by 8.5% to reach £29.3 million, accompanied by a sales uptick of 5.2%, bringing total revenues to £221.3 million. This growth was predominantly driven by the company’s soft drinks division, which saw a 7% rise in sales. Within this category, Rubicon emerged as a key contributor, achieving double-digit growth in both volume and value.
AG Barr’s ready-to-drink cocktails division also demonstrated strong performance, particularly in the take-home market where sales grew by 9.1%. This figure is significantly higher than the overall growth rate of the pre-mixed alcoholic drinks market, which stands at 2.7%. However, the Funkin cocktail brand witnessed a decline of 9.4% in sales, a downturn attributed to weak consumer demand in the on-trade channel.
Meanwhile, the company’s Boost energy drink brand faced challenges, prompting a strategic focus on improving margins, enhancing profit recovery, and insourcing production. These efforts are reportedly advancing according to AG Barr’s plan. The company anticipates further growth in the latter half of the year, supported by planned promotional and marketing investments, with expectations that the Funkin brand will return to positive performance.
AG Barr’s Chief Executive, Euan Sutherland, expressed optimism about the company’s future prospects, highlighting AG Barr as a business replete with substantial and attainable growth opportunities. Sutherland underscored the ongoing investments in the supply chain, aimed at bolstering capacity and sustaining growth plans, which in turn are expected to yield benefits such as enhanced margins and service resilience. He affirmed unchanged guidance for 2024/25 sales and operating margins, reinforcing the business’s confidence in achieving continued sustainable growth over the long term.
AG Barr is poised for a promising performance in the latter half of the year, driven by strategic investments and market innovation.
