AG Barr grows sales but acquisition costs trim statutory profit

AG Barr ($BAG) increased half-year revenue by 8.5% to £247.4 million, supported by its core drinks brands and recent acquisitions. Adjusted pretax profit rose 2.6% to £36.1 million, with the adjusted operating margin holding at 15%. Statutory pretax profit declined 3.7% to £33.9 million, mainly because of one-off costs from integrating Fentimans.

The company said summer supply problems had been resolved, its Cumbernauld manufacturing refresh was complete, and the Milton Keynes expansion remained on schedule. Fentimans and Frobishers are integrated, with cost benefits expected in the second half. Management maintained full-year expectations of roughly 10% revenue growth and a 15% adjusted operating margin. Net bank debt of £47 million reflects acquisitions, capital investment and seasonal working capital, so stronger reported sales have not translated into a net-cash position.

Sources:

• AG Barr RNS interim results