A.G. BARR (BAG) H1 24/25 earnings summary

Executive summary

• Revenue for H1 2024/25 rose 5.2% year-over-year to £221.3m, with adjusted PBT up 8.5% to £29.3m and adjusted EPS up 9.4% to 19.86p.

• Gross margin improved by 260bps to 40.3%, and adjusted operating margin increased by 50bps to 13.0% year-over-year.

• Net cash at period end was £43.7m, down from £47.3m, reflecting investment and the Rio acquisition.

• Interim dividend increased 17% to 3.10p per share, reflecting confidence in future growth.

• Brand highlights include strong campaigns for IRN-BRU and Rubicon, with significant distribution gains and innovation driving growth.

Financial highlights

• Volumes increased 3.2% year-over-year to 36.0m cases.

• Adjusted PBT rose 8.5% to £29.3m, while reported PBT fell 10.4% to £24.9m due to £4.4m in one-off costs.

• Dividend per share increased 17% to 3.10p.

• Cash capex rose 13.8% to £7.4m, supporting manufacturing upgrades.

• Net cash from operating activities: £13.0m, impacted by non-recurring costs.

Outlook and guidance

• Full-year guidance unchanged: mid single-digit revenue growth expected, with margin rebuild on track for 14–15% in FY25/26.

• Guidance for FY24/25 revenue (£421.5m) and PBT (£57.2m) unchanged; confident in delivering full-year results.

• Around £5m of one-off costs anticipated for business change projects in FY24/25.

• Capex expected at approximately £20m; progressive dividend policy to continue.

• Net cash expected to close above FY23/24 levels.