Shares in AG Barr (BAG) bubbled up 7% to 659p after the beverage producer delivered tasty profit growth for FY26.
The Irn-Bru-to-Rubicon maker said it entered FY27 with ‘good momentum’. And the company insisted it is on track to generate double digit percentage sales growth this year.
Furthermore, CEO Euan Sutherland reiterated his ambition to double the size of the business, both organically and via a ‘more meaningful M&A strategy’.
Strong core
Revenue grew 4% to £437.3 million in the year to January 2026. This rise reflected growing momentum in AG Barr’s core soft drinks brands of IRN-BRU, Rubicon and Boost.
Adjusted pre-tax profits fizzed up 12.5% to £65.8 million thanks to tight cost controls and efficiency gains.
The Cumbernauld-based group, whose other brands include Funkin and Moma, also raised the total dividend by 11% to 18.71p.
Progressing to plan
AG Barr said the integration of recent acquisitions Fentimans and Frobishers for a combined £51 million is ‘progressing to plan’.
To recap, both acquired brands operate in an attractive adult soft drinks market benefitting from the consumer trend of reduced alcohol consumption. These deals, plus the revamp of Irn-Bru Zero, show AG Barr is broadening its reach instead of leaning too heavily on its core brand.
‘We entered FY26/27 with good momentum and clear priorities,’ said Sutherland, ‘and expect to deliver a year of low double digit percentage revenue growth supported by our recent acquisitions.’
Sutherland added: ‘Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business.’
Weak consumer confidence, cost inflation and regulatory changes are risk factors to weigh. But we remain big fans of AG Barr.
The company has strong brands, pricing power, high operating margins and pays a progressive dividend.
The recent acquisitions of Innate-Essence, Frobishers and Fentimans have broadened its addressable market. And Sutherland is doubling the pace of new product development and expanding the business into healthier categories.
Crucially, AG Barr still has room to grow in a large and growing soft drinks market with defensive characteristics.
Read the press release here: https://www.agbarr.co.uk/investors/results-and-news/regulatory-news/
You might also like these stories:
