Profits and sales lift at Irn-Bru maker after price hikes

Irn-Bru maker AG Barr has revealed stronger sales and profits on the back of price increases at the start of the year.

The Scottish firm said it saw particularly strong sales of energy and sports drinks over the past six months.

Boss Euan Sutherland said the business has made “good progress” in setting itself up for long-term growth.

AG Barr told shareholders on Tuesday that revenues lifted by 3.1% to £228.1 million for the 26 weeks to July 26, compared with the same period a year earlier.

It said revenue growth was largely driven by “pricing actions taken in the first quarter”, which temporarily impacted sales volumes, although these picked up later in the half.

Demand for sports drinks, energy drinks and water have helped support growth despite “subdued” consumer confidence, AG Barr said.

It also highlighted positive sales for the Boost energy drink brand it bought in 2022, which recorded double-digit growth.

The company also said it has seen growth in health-focused functional drinks across the UK, and aims to expand in this area following its deal to buy a majority stake in Innate-Essence Ltd, the parent firm of The Turmeric Co, in July.

AG Barr reported that pre-tax profits jumped by 41.4% to £35.2 million for the past six months.

Mr Sutherland said: “I am pleased to report strong first half results that reflect continued delivery against our strategic priorities and positive momentum across the business.

“We are making good progress putting in place the building blocks of long-term growth.

“We are investing in our brands, operations and people to build a stronger, scalable, more profitable business.”

The company held firm on its financial targets for the current year.

Shares in the company were 1.3% higher on Tuesday morning.