AG Barr’s Share Price Edged Up 2.0% on FY 2024 Trading Update

The A G Barr PLC (LON: BAG) share price increased 2.02% after issuing a trading update for the year ending 28 January 2024. The company’s projected revenues stand at approximately £400 million, marking a year-on-year increase of about 26% and a like-for-like growth of roughly 7.6% after adjusting for the acquisition of Boost Drinks in December 2022.

The adjusted pre-tax profit is anticipated to reach around £49.5 million, rising 13.8% compared to the previous year (2022/23: £43.5 million) and slightly surpassing prior market forecasts. Despite challenges posed by adverse summer weather affecting third-quarter market dynamics, our brands' enduring appeal ensured robust performance in the second half of the year:

The Soft Drinks Segment includes brands like IRN-BRU, Rubicon, and Boost. While inflation within the broader soft drinks market drove value growth, it also affected sector volumes. Its brand development and pricing strategies have grown in value and volume, allowing us to continue providing consumers with enjoyable and affordable products.

FUNKIN Cocktails witnessed significant growth in the fourth quarter, especially in the retail sector, with notable success in the ready-to-drink category. Although the performance across bar and restaurant venues varied, with some late-night spots seeing decreased visits, the festive season brought positive sales reports from various hospitality establishments, offering a promising outlook.

MOMA Foods achieved double-digit sales growth, fueled by securing new contracts, particularly within the speciality coffee market.

While the company faces cost inflation, its impact has moderated compared to the previous year. The firm’s investment in the supply chain infrastructure, aimed at bringing the production of Boost and Rio brands in-house, is progressing well. This strategic move and the realisation of operational efficiencies and synergistic advantages propel its margin recovery efforts forward.

Roger White, AG Barr’s Chief Executive, commented: “All our teams across the Group have worked hard to deliver an excellent overall performance. This has been supported by continued brand investment, strong execution of our sales plans and progress across our supply chain improvement programme. We have positive momentum behind our brands and business as we enter the new financial year.”

AG Barr share price. 

The AG Barr share price edged up 2.02% to trade at 581.5p from Wednesday’s closing price of 570.0p.