Barr shares soar amid £400m revenue, strong outlook

Shares of A.G. Barr, the Cumbernauld-based maker of Irn-Bru, Rubicon energy drinks and Funkin cocktail mixers, rose as much as 9% after the firm said its revenue for the year ended January 28, 2024, rose 25.9% to £400 million and adjusted profit before tax was up 16.1% to £50.5 million.

Barr said in its outlook: “Having seen continued positive brand momentum in the early weeks of the new financial year, we remain confident in our strategy and the continued delivery of revenue and profit growth in the year ahead. “

Full year dividend of 15.05p per share is up 14.9%.

Barr shares rose to about £5.62 to lift the firm’s stock market value to roughly £630 million.

Barr CEO Roger White said: “With our business in a strong financial position, and our portfolio of differentiated brands poised for further growth, I have every confidence that our proven strategy, our results-driven teams and our well-invested asset base will continue to support long-term growth and value creation.

Barr also announced that its commercial director Jonathan Kemp has advised the board that “owing to family health reasons” he will not seek re-election as a statutory director at the firm’s AGM on May 31, 2024.

“In order to facilitate a smooth leadership transition, Jonathan will continue to lead the Commercial function until 30 September 2024,” said the firm.

“Thereafter he will remain available to the company as required for a further twelve month period following which he will retire from the business.

“The business will commence a recruitment process in due course to identify a successor – this role will not be an executive director board position.

“As previously communicated on 26 May 2023, after nine years as a non-executive director, David Ritchie will stand down from the board with effect from the conclusion of the AGM.

“David will be succeeded by Louise Smalley as Remuneration Committee Chair.”

Barr chair Mark Allen said: “On behalf of the board, I would like to thank Jonathan for his significant contribution to A.G. BARR for over 20 years.

“As Commercial Director, he has been instrumental to the growth of the company, with the business in a strong position to continue to grow and develop.

“We wish him and his family all the very best for the future. I would also like to thank David for his commitment and contribution to the business over many years.

“The board has benefitted from his extensive knowledge and experience and wishes him well with his future endeavours.”