Euan Sutherland, Chief Executive (Credit: A.G. BARR)

Irn-Bru maker AG Barr sees 3% revenue rise

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AG Barr, known for Irn-Bru, Rubicon, Boost and FunKin, grew sales by 3% to £228.1 million in the six months to 26 July 2025.

Boost was the principal growth engine, delivering strong double-digit revenue gains following strategic brand enhancements and distribution expansion. In contrast, established brands Irn-Bru and Rubicon were flat year-on-year, although they showed firmer momentum in the second quarter.

The group’s adjusted pre-tax profit jumped 20.1% to £35.2 million, benefiting from a notable rise in operating margin, which climbed from 13% to 15% thanks to manufacturing efficiencies and tight cost control. Funkin Cocktails continued to perform robustly in off-trade channels despite challenges in the hospitality sector.

Reflecting its strategy of diversifying into high-growth health-focused categories, AG Barr acquired a 50.1% stake in Innate-Essence, owner of The Turmeric Co and Raw Hydrate brands, for £15.1 million.

The deal aligns with the company’s ambition to innovate and build its functional beverage portfolio. The business also completed the sale of Strathmore and the Forfar production site, which slightly dented short-term revenue but did not impact profit expectations.

AG Barr’s management maintained a positive full-year outlook, expressing confidence in a strong second half, underpinned by increased marketing and new product innovation.

Chief Executive Euan Sutherland noted that the business “enters the second half with strong momentum”, citing ongoing investment in brands, personnel, and operations as “building blocks of long-term growth”.

Reflecting the robust performance, the company lifted its interim dividend by 11% to 3.44p per share. Shares rose on the news as investors responded positively to the continued progress on AG Barr’s strategic and financial targets.

AG Barr’s first half results underline its resilience and ability to outperform the broader UK soft drinks market, supported by a growing presence in functional drinks and a clear focus on profitability and innovation.

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