A.G. BARR (BAG) Trading update summary

Trading performance

• H1 26/27 revenue expected at approximately £246m, up 8% year-on-year, driven by core brand growth and recent acquisitions.

• H1 operating margin anticipated to be mid-range of guidance, despite £10m revenue impact from supply chain issues.

• Market share gains and innovation support confidence in improved H2 revenue and double-digit full-year growth.

• Integration and insourcing actions are expected to strengthen H2 operating margin and support full-year profit expectations.

Strategic and operational highlights

• Core brands IRN-BRU, Rubicon, and Boost showed strong growth, with IRN-BRU and Rubicon benefiting from rebranding and innovation.

• Boost achieved double-digit growth, expanding into grocery and healthy hydration categories.

• Weakness in FUNKIN and Barr Brands partially offset core brand growth.

• Integrations of Fentimans and Frobishers completed on schedule, with operational efficiencies expected in H2.

• Manufacturing investment programme is on track, with Boost Sports production insourced and capacity upgrades progressing.

Outlook and guidance

• Full-year profit guidance maintained, with analyst consensus for adjusted PBT at £71.9m.

• Adjusted operating margin and ROCE guidance ranges are 14-16% and 19-21%, respectively, with ROCE expected at the lower end due to recent investments.

• Supply constraints from Q2 are being resolved, supporting confidence in full-year performance.