AG Barr enjoys report yr as English prospects purchase extra Irn-Bru

Irn-Bru producer AG Barr enjoyed record turnover last year, partly thanks to sales of Scotland’s favourite soft drink seeing double-digit growth in England. 

Irn-Bru sales rose by 6.4 per cent thanks to double-digit percentage growth south of the border, greater consumer marketing investment and the launch of limited-edition Raspberry Ripple and Wild Berry Slush flavours. 

The Scottish company, which celebrates its 150th anniversary this year, revealed its revenue increased by 5.1 per cent to £420.4million in the year ending January 2025 despite challenging market conditions.

Sales of its Rubicon fruit drinks also jumped by 17 per cent and AG Barr also saw growth in energy drinks, still drinks and flavoured water. 

Higher soft drink purchases offset weaker on-trade revenue from its Funkin cocktails brand, which AG Barr acquired a decade ago.

AG Barr said Funkin was ‘not immune’ from the pressures facing hospitality venues, such as cost-of-living pressures and a shift away from alcohol-based socialising.

Tasty: Soft drinks drove AG Barr’s growth, with sales of Rubicon jumping by 17%

Supply of the brand’s ready-to-drink cans also suffered some temporary disruption during the second quarter.

Nonetheless, AG Barr’s adjusted pre-tax profits grew by 15.8 per cent to £58.5million, while statutory pre-tax profits went up by 3.7 per cent to £53.2million.

Its chief executive, Euan Sutherland, remarked: ‘We ended the year in strong financial health, with our brands and business well-positioned for further growth.’

However, he warned that the external environment was set to ‘remain challenging’ due to inflation and employers’ national insurance increasing by 1.2 percentage points to 15 per cent from April.

AG Barr also announced plans to discontinue its Strathmore mineral water brand later this financial year, which could result in the possible closure of a small manufacturing facility in Forfar, Scotland.

Last year, the FTSE 250 business shut down its direct sales operations in Dagenham, Manchester and Wednesbury near Birmingham and the Leeds office of energy drink brand Boost, causing up to 195 job losses.

Zoe Gillespie, investment manager at RBC Brewin Dolphin, said the Strathmore move is ‘unlikely to have a material impact on the company.’

She added: ‘AG Barr has a lot of qualities as a business and continues to invest in its operations – while the drinks market is highly competitive, the company should remain in a strong position when others may struggle.’

AG Barr shares were 0.8 per cent up at 625p on late Tuesday morning and have risen by approximately 22 per cent over the past year.