AG Barr toasts 15.5% pretax profit rise to £51.3 million

AG Barr toasts 15.5% pretax profit rise to £51.3 million

Roger White

Soft drinks producer AG Barr has unveiled its financial results for the year ended 28 January 2024, revealing a pretax profit of £51.3 million, up 15.5% from £44.4m.

Revenue at the soft drinks producer rose 25.9% from £317.6m to £400m year-on-year.

Board chair Mark Allen attributed the results to the company’s “long-term growth strategy” having “been well executed during the year”.

Highlights Mr Allen pointed out include:

  • Strong revenue and volume growth across AG Barr’s soft drinks portfolio, with a notable performance from the Rubicon brand.
  • Progress on a number of fronts in the first full year of ownership of the Boost business alongside the acquisition of the Rio tropical fruit drinks brand.
  • Margin rebuild plan well underway, accompanied by strong cash generation and balance sheet strength.

He added: “Our performance has been delivered by an excellent team of people across the whole group, who have worked hard in the execution of our winning strategy.”

The results have brought the company’s net cash position to £53.6m, despite substantial investments made during the year and the £12.3m deal to acquire the Rio brand.

AG Barr has announced a full-year dividend of 15.05p per share, marking a 15% year-on-year increase, including the final recommended dividend of 12.40p per share.

Roger White, chief executive, said: “I would like to take the opportunity to thank all of the teams across the group who have worked incredibly hard to deliver this excellent financial performance.

“With our business in a strong financial position, and our portfolio of differentiated brands poised for further growth, I have every confidence that our proven strategy, our results-driven teams and our well-invested asset base will continue to support long-term growth and value creation.”

As previously announced Mr White will step down at the end of April 2024, remaining available until the end of July to support a smooth leadership transition. Euan Sutherland will become CEO effective from 1 May.

Several other board changes have also been confirmed. Jonathan Kemp, the company’s commercial director, has advised the board that he will not seek re-election as a statutory director at the AGM on 31 May due to family health reasons. However, he will continue to lead the commercial function until 30 September and remain available to the company for an additional 12-month period before retiring.

Additionally, David Ritchie, a non-executive director for nine years, will step down from the board at the conclusion of the AGM. Louise Smalley will succeed him as the remuneration committee chair.

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