A.G. Barr, the Cumbernauld-based owner of Irn-Bru, Rubicon energy drinks, Boost Drinks, Funkin cocktail mixers and MOMA foods, on Tuesday reported first-half revenue growth of about 5%, of which soft drinks growth was 7%.

In a trading update for the 26 weeks ended July 27, 2024, Barr said revenue for the first half of the financial year is expected to be cabout £221 million, up from £210.4 million.

The firm also said Britvic executive Dino Labbate will join Barr in a newly created role of MD of A.G. Barr, reporting to CEO Euan Sutherland, as commercial director Jonathan Kemp retires.

Barr reported growth in volume and value for Irn-Bru, supported by a “highly successful Euros media campaign.”

For Rubicon, Barr reported double digit growth “with innovation, marketing investment and new distribution gains.”

For Boost Drinks, Barr highlighted “margin realignment and business integration on plan, production sourcing programme underway.”

CEO Sutherland said: “I am pleased to report overall H1 revenue growth of c.5% with Soft Drinks growth of c.7%, against strong prior year comparatives.

“The strategic margin rebuild programmes are on plan, guidance on revenue and margin remains unchanged, and we are on track to meet FY expectations.

“Our four power brands – IRN-BRU, Rubicon, Boost and FUNKIN – have clear paths to long term growth, supported by strong innovation programmes across all of our portfolio and opportunities to work even more closely to add value to our customers, in all channels.

“We continue to invest in our supply chain which will deliver tangible benefits as we insource more of our volume, build capacity to support our growth plans, improve resilience and enhance our margins.

“We have a clear and focussed UK based growth strategy with simple KPIs of Net Revenue, Operating Margin and ROCE.”

Barr said analyst consensus is for FY24 is net revenue of £421.2 million and full-year profit before tax of £56.9 million (FY23 PBT £50.5m).

The company added: “Strong Soft Drinks brand performance was led by Rubicon where successful marketing and further distribution gains drove double digit revenue growth.

“Revenue from IRN-BRU was up through a combination of volume and value growth and continued market share gains in England. As previously communicated, the focus for Boost this year is on margin build and insourcing of the operation and this continues on plan …

“The FUNKIN ready-to-drink (RTD) business has continued to grow at pace in our strategic growth channel of retail where it is the number 1 RTD cocktail brand. Strong off-trade growth was impacted by short term issues with third party can production and the ongoing challenges in the hospitality sector where late night venues remain particularly affected …

“MOMA maintained its growth in H1 with new distribution gains.

“The Barr Direct route to market closed at the end of June with no impact to customer service. Symbol and Independent retailers are now fully serviced through the Wholesale Channel, supported by a larger Field Sales team.

“The integration of Boost into Barr Soft Drinks is on track and will be completed in H2. Manufacturing synergies continue to be realised as production is insourced.

“As previously stated, these two projects are expected to give rise to a one-off cost of c.£5m in the 2024/25 financial year, the majority of which will be incurred in H1.

“As previously communicated, Jonathan Kemp, Commercial Director, will retire later in the year and we are pleased to announce the appointment of Dino Labbate.

“Dino joins in January, in a newly created, broader role of MD A.G. BARR, reporting to Euan Sutherland. Jonathan will not be replaced on the board and will remain with the business on a consultancy basis through to autumn 2025.”

Labbate is currently GB Commercial Director for Hospitality at Britvic plc.

In its H2 outlook, Barr said: “The half year trading performance is in line with our expectations. We remain committed to improving our profit margins which, combined with the forecast revenue growth, will lead to positive earnings momentum for H2 and beyond.

“The outlook for the full year remains unchanged and we are on track to meet FY expectations.”