A.G. BARR (BAG) Q1 25/26 TU earnings summary

Executive summary

• Revenue rose 5.2% year-over-year to £221.3m for the 26 weeks ended 27 July 2024, with adjusted profit before tax up 8.5% to £29.3m.

• H1 2025/26 revenue expected at £228m, up 3% year-over-year, with trading momentum increasing in Q2.

• Adjusted operating margin improved to 15.0% from 13.0% year-over-year, driven by manufacturing efficiencies and cost management.

• Strong brand performance, notably from Rubicon and Boost, supported by marketing campaigns and distribution gains.

• Strategic business changes and manufacturing investments are progressing as planned to drive efficiency and growth.

Financial highlights

• H1 2025/26 revenue of £228m, compared to £221.3m in H1 2024/25.

• Adjusted EPS rose 9.4% to 19.86p; dividend per share up 17% to 3.10p.

• Net cash at bank stood at £43.7m, down from £47.3m at the previous period end.

• Several record volume weeks achieved in Q2.

• Adjusted metrics exclude £4.4m of one-off costs related to business change projects.

Outlook and guidance

• Full-year guidance unchanged: mid single-digit revenue growth expected, with margin rebuild programme targeting 14-15% operating margin in 2025/26.

• Full year result expected in line with market expectations, factoring in higher planned marketing spend in H2.

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

• Year-end net cash expected to exceed 2023/24 closing balance.

• Around £5m of one-off costs anticipated for business change projects in FY 2024/25.