AG Barr’s sales and profits saw a significant increase in the first half of 2024, thanks to its thriving soft drinks sector.
- Sales for the six months ending 27 July 2024 rose by 5.2%, reaching £221.3 million.
- The soft drinks category, particularly with Rubicon and Irn-Bru, played a crucial role with a 7% increase in sales.
- The ready-to-drink cocktails segment outperformed market growth, although certain brands faced challenges.
- AG Barr remains optimistic about its future, expecting continued growth through strategic investments and innovations.
Irn-Bru and Rubicon have been pivotal to AG Barr’s growth in the first half of 2024. Overall sales reflected a noteworthy 5.2% rise, amounting to £221.3 million. The soft drinks division was particularly influential, achieving a 7% boost, led by Rubicon’s impressive double-digit growth in both volume and value.
AG Barr’s ready-to-drink cocktail offerings surpassed market growth rates significantly. The take-home market for these beverages expanded by 9.1%, which was well ahead of the broader pre-mixed alcoholic drinks market, which saw a modest 2.7% increase. However, the period also saw a 9.4% decline in the Funkin cocktail brand, largely due to low consumer demand within the on-trade channel.
Despite experiencing some setbacks, AG Barr’s management is encouragingly focused on restoring the profitability of its Boost energy drink brand. A strategic plan is in place to enhance profit margins through production insourcing and other efficiency measures. This alignment with broader business goals underpins AG Barr’s strategy for margin improvement.
AG Barr’s Chief Executive, Euan Sutherland, expressed his confidence in the company’s robust growth trajectory. He emphasised the strategic investments in the supply chain aimed at bolstering capacity to meet growing demand and improve service resilience. He also indicated that marketing and innovation efforts would be crucial in sustaining the current momentum.
The business outlook remains positive, with anticipation of a strong performance in the latter half of the year. The company’s core brands, including Irn-Bru, Rubicon, Boost, and Funkin, are expected to drive this growth, underpinned by continued promotional activities and strategic innovations.
AG Barr anticipates sustained growth through strategic innovations and investments, bolstering confidence in its future performance.
