A.G. BARR (BAG) H1 26/27 earnings summary

Executive summary

• H1 revenue rose 8.5% to £247.4m, outpacing the UK soft drinks market, supported by core-brand momentum and acquisitions.

• Temporary supply constraints caused an estimated £10m in lost sales; issues were resolved and service metrics normalized.

• Adjusted PBT increased 2.6% to £36.1m; statutory PBT fell 3.7% to £33.9m, reflecting adjusting items.

• Fentimans and Frobishers integration was completed, with synergies expected in H2.

• Interim dividend increased 11% to 3.82p per share.

Financial highlights

• Revenue increased 8.5% to £247.4m; like-for-like growth was broadly flat, with underlying growth estimated at 4%-5% excluding the supply impact.

• Adjusted operating margin held at 15.0%; statutory operating margin was 14.1%.

• Gross margin declined 140bps to 40.8%, reflecting acquisition dilution and service-recovery actions.

• Adjusted EPS rose 0.4% to 24.99p; statutory EPS fell 4.3% to 23.82p.

• Net bank debt was £47.0m at period end, reflecting acquisitions and capital investment.

Outlook and guidance

• FY revenue growth forecast at ~10%, with adjusted operating margin of ~15%; adjusted PBT expected at £71.5m, in line with market expectations.

• H2 expected to deliver higher revenue and profit growth, supported by resolved supply constraints and acquisition synergies.

• Year-end net bank debt forecast at £10m-£20m; cash CapEx at ~£40m and adjusting costs at ~£3m.

• FY operating margin expected slightly above H1; ROCE forecast near 19%, at the lower end of the 19%-21% target range.

• Medium-term targets reaffirmed: revenue growth of at least 4%, operating margin of 14%-16%, and ROCE of 19%-21%.