A.G. BARR H1 Earnings Call Highlights

• Core brands Boost and Rubicon led growth, while IRN-BRU Zero grew 7% in revenue and 10% in retail sales value; newly launched Boost Water+ generated £3 million in incremental revenue
• Supply-chain bottlenecks from manufacturing-line refresh, acquisition integrations, and new planning-system rollout caused approximately £10 million in lost sales during peak summer season
• Acquired brands Fentimans and Frobishers now represent 9% of group revenue with integration completed; company plans to bring Fentimans manufacturing in-house in early 2028

A.G. BARR H1 Earnings Summary

Financial Performance

A.G. BARR (LON: BAG) reported first-half fiscal 2026/27 revenue growth of 8.5% to £247.4 million, with profit before tax rising 2.6% to £36.1 million. The company maintained a 15% operating margin despite approximately £10 million in lost sales due to supply-chain disruptions. On a like-for-like basis, revenue was broadly flat, but excluding supply issues, underlying growth would have been 4-5%.

Operational Challenges

Supply-chain bottlenecks during Q2 resulted from simultaneous operational projects, including manufacturing-line upgrades at Cumbernauld, integration of acquired brands Fentimans and Frobishers, and implementation of a new demand planning system. Management expects full recovery by end of Q3.

Brand Performance

Core brands outperformed the 6.7% soft drinks market growth with 7.2% growth. Key highlights include:

• IRN-BRU: 29% of group revenue, flat overall but IRN-BRU Zero grew 7%
• Rubicon: 19% of revenue, up 1%, with Sparkling variant up 16%
• Boost: 8% revenue growth, with Boost Sport up 24%
• New products: Boost Water+ generated £3 million incremental revenue

Fentimans and Frobishers contributed 9% of group revenue with integration completed in H1.

Outlook and Investment

A.G. BARR maintained full-year guidance of approximately 10% revenue growth and £71-72 million profit before tax. Capital expenditure totaled £23.4 million in H1, with £40 million expected for the full year. Net bank debt stood at £47 million versus £41.6 million net cash at year-start. The company is expanding capacity at Milton Keynes with a second can line operational in early 2027.