AG Barr, renowned for its soft drinks, has reported remarkable growth in sales and profits for the first half of 2024.
- The company’s adjusted pre-tax profit soared by 8.5%, reaching £29.3m, with sales climbing 5.2% to a total of £221.3m.
- A significant contributor to this growth was the company’s soft drinks division, which experienced a 7% increase, notably led by Rubicon.
- The ready-to-drink sector in the company’s cocktails division outpaced the market, growing at 9.1% compared to a market rate of 2.7%.
- Despite challenges in the on-trade channel, AG Barr remains optimistic about the performance of its key brands.
AG Barr has experienced a substantial boost in its financial performance during the first six months of 2024, primarily driven by the impressive performance of its soft drinks sector. The company’s adjusted pre-tax profit saw an 8.5% rise, reaching £29.3 million. Simultaneously, sales increased by 5.2%, totalling £221.3 million.
The company attributes much of its success to the robust growth of its soft drinks offerings, which saw a 7% increase in both volume and price gains. A standout performer in this segment was Rubicon, delivering double-digit growth in both volume and value, highlighting its significant contribution to the sales surge.
Furthermore, AG Barr’s cocktails division has shown remarkable resilience, particularly in the take-home market for ready-to-drink products. This segment grew by 9.1%, significantly outpacing the general pre-mixed alcoholic drinks market which grew at a rate of 2.7%.
However, the company acknowledges some challenges, particularly with its Funkin cocktail brand, which saw a 9.4% decline in sales, attributed to persistently weak consumer demand in the on-trade channel. Likewise, its Boost energy drink brand faced challenges, prompting the company to focus on margin improvements and profit recovery strategies.
Looking forward, AG Barr remains optimistic about the continued growth of its core brands, supported by strategic marketing and promotional investments. CEO Euan Sutherland expressed confidence in the company’s future, emphasizing ongoing investments in supply chain enhancements, which are expected to improve service resilience and margins.
Overall, AG Barr is well-positioned for continued growth, with strategic investments and market-leading products driving its success.
