The beverage company saw revenue rise 3.1% to £228.1m and has reconfirmed its profit expectations for the full year.

The growth was largely driven by its soft drinks division, where the Boost brand delivered double-digit revenue growth. The company’s adjusted operating margin expanded by 200 basis points to 15.0%, which it credited to its ongoing margin improvement programme and disciplined cost management.

Chief executive officer Euan Sutherland said he was pleased to report strong results reflecting “continued delivery against our strategic priorities and positive momentum across the business”. He added: “We are investing in our brands, operations and people to build a stronger, scalable, more profitable business.”

The period saw AG Barr continue its strategic pivot towards high-growth functional beverages. In July, it acquired a 50.1% stake in Innate-Essence Ltd, which owns brands such as The Turmeric Co. This move was complemented by the sale of the Strathmore water brand, reflecting what the company calls a “disciplined approach to capital allocation.”

While sales of IRN-BRU were in line with the prior year, the company expects growth in the second half, supported by increased marketing and a new limited-edition flavour. The FUNKIN cocktails division saw a revenue decline of 5.2%, though performance improved in the second quarter.

The results were described as a “sparkling set” by John Moore, wealth manager at RBC Brewin Dolphin. He noted: “AG Barr has delivered a sparkling set of results, showing robust sales growth especially within the soft drinks business… AG Barr has a lot of qualities as a business and continues to invest in its operations – the business has a strong balance sheet and is well placed to add any potential accretive bolt on acquisitions.”

The board declared an 11% increase in the interim dividend to 3.44p per share. The company ended the period with a net cash position of £41.3m.