A.G. BARR LON: BAG reported first-half revenue growth of 8.5% to £247.4 million for fiscal 2026/27, as contributions from acquisitions and continued demand for its core soft-drinks brands offset temporary supply-chain disruption during the summer trading period.
Profit before tax rose 2.6% to £36.1 million, while the company maintained a 15% operating margin. Chief Executive Officer Euan Sutherland said the group remained on track to meet full-year market expectations after resolving operational bottlenecks that had affected customer service and inventory availability in the second quarter.
Supply disruption reduced sales during peak season
A.G. Barr said it experienced approximately £10 million of lost sales during the first half as it completed several operational projects, including the final phase of a manufacturing-line refresh at Cumbernauld, the integration of Fentimans and Frobishers, and the rollout of a new demand and supply planning system.
Sutherland said the planning-system implementation created bottlenecks during the second quarter, but corrective actions had resolved the issues. Inventory and customer-service metrics were normalizing, he said, with availability expected to recover further by the end of the third quarter.
“We believe that we will be back up to where we needed to be at the end of quarter three, leading us into a good place for quarter four,” Sutherland said during the question-and-answer session.
On a like-for-like basis, Chief Finance and Operating Officer Stuart Lorimer said first-half revenue was broadly flat. Sutherland added that excluding the estimated sales impact from supply issues, underlying like-for-like growth would have been approximately 4% to 5%.
Core brands gain share, with Boost and Rubicon leading growth
The total soft-drinks market grew 6.7% in the first half, supported by favorable summer weather, according to the company. A.G. Barr said it outperformed the broader market with 7.2% growth, led primarily by Boost and Rubicon. The group said its sales in England increased 11% over the 26-week period, supported by IRN-BRU Zero, Rubicon Sparkling and Boost Sport.
IRN-BRU remained the company’s largest brand, representing 29% of group revenue. Revenue was broadly flat during the period, though A.G. Barr said the brand exited the first half with stronger momentum. IRN-BRU Zero generated 7% revenue growth and 10% retail sales value growth, while IRN-BRU retail sales value in England rose 7%.
Rubicon, which represented 19% of group revenue, posted 1% revenue growth. The company cited a 16% increase in retail sales value for Rubicon Sparkling and said its new Twist and Dilute range generated £2 million in incremental first-half revenue.
Boost delivered 8% revenue growth, with Boost Energy retail sales value up 6% and Boost Sport up 24%. The recently launched Boost Water+ generated £3 million of incremental revenue despite being available only through symbols and independent convenience outlets during the period.
Portfolio-brand revenue declined 6%, reflecting weakness in FUNKIN and Barr brands as well as portfolio prioritization during the supply disruption. Sutherland said FUNKIN continued to experience sales declines in both on-trade and off-trade channels, although its profitability had improved and was broadly in line with the group operating margin.
Fentimans and Frobishers integration completed
Fentimans and Frobishers accounted for 9% of group revenue and were a key contributor to reported growth. Lorimer said the acquired brands delivered about 8% of first-half revenue growth, while the core IRN-BRU, Rubicon and Boost brands together grew about 2% to 3%.
The company said the integration of both businesses was completed in the first half, with expected overhead savings due to begin contributing in the second half. Lorimer said the Fentimans organization had been transferred into A.G. Barr’s logistics, warehousing, marketing, sales and brand-building network.
A.G. Barr plans to pursue further commercial and operating benefits from the acquisitions. It expects to bring Fentimans manufacturing in-house in early 2028, while Frobishers will continue to be produced by third-party co-packers.
Investment and full-year outlook maintained
Capital expenditure totaled £23.4 million in the first half, including investments at Cumbernauld, Milton Keynes and Innate-Essence. A new high-speed can line at Cumbernauld has been commissioned, while new PET sleeving capacity allowed the company to bring Boost Sport and Boost Water+ production in-house from the end of the first half.
The Milton Keynes expansion, including a second can line, is progressing and is expected to increase capacity and technical capability from early 2027. The company said the project would support planned insourcing of Boost Energy production during fiscal 2027/28.
A.G. Barr ended the period with £47 million of net bank debt, compared with £41.6 million of net cash at the start of the year, reflecting acquisitions, capital expenditure, dividends and seasonal working-capital movements. The company expects net bank debt of £10 million to £20 million at year-end as working capital unwinds.
Management maintained guidance for approximately 10% full-year revenue growth, an operating margin slightly above the first-half level, and return on capital employed at the lower end of its 19% to 21% target range. It expects cash capital expenditure of about £40 million for the year and adjusted costs of around £3 million, primarily related to Fentimans integration.
The company expects full-year profit before tax of £71 million to £72 million, in line with market expectations. Sutherland also reaffirmed A.G. Barr’s medium-term targets, saying management was confident that the business had built a stronger platform for growth despite the second-quarter supply-chain disruption.
About A.G. BARR (LON:BAG)
A.G. Barr is a UK-based branded multi beverage business focused on growth and the creation of long-term shareholder value.
Ambitious and value driven, with strong consumer focus, it is a brand owners and builder, offering a diverse and differentiated portfolio of brands that people love.
Established almost 150 years ago in Scotland, now operating across the UK and with export markets throughout the world, A.G. Barr strives to grow its business both organically and through targeted acquisition.
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