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.
