AG Barr shares jumped on Tuesday after the London-listed beverages group said it was on track to secure double-digit annual profit growth. The FTSE 250 firm told investors that Scottish-favourite Irn-Bru is now 'one of the top five carbonates in the UK', while Rubicon had proved a 'stand-out performer' in 2024 with another year of double digit revenue growth.
The firm's FUNKIN brand, known for its cocktail mixers and ready-to-drink products, showed signs of progress, despite challenges in the on-premise market that have weighed this year. AG Barr, which also owns the Boost brand, expects to post revenues of around £420million for the 12 months to 25 January, reflecting a 5 per cent increase from the previous year's £400million.
Its adjusted operating margin is expected to show 'strong improvement' and climb to 13.5 per cent by the end of the period, up from 12.3 per cent a year ago. The group expects higher revenue and improved margins to help 'drive double digit profit growth'.
Boss Euan Sutherland said: 'These headline metrics highlight excellent progress towards our long-term financial goals. 'We have sustained brand momentum despite the well trailed wider market pressures, and continue to make good progress towards our margin target.'.
On the up: AB Barr shares rose sharply on Tuesday after the firm posted a trading update. AG Barr shares rose 6.17 per cent or 36p to 619p on Wednesday, having risen over 11 per cent in the last year. Sutherland added: 'AG Barr is in line to deliver another year of strong top line growth, margin improvement and cash generation.
