Trading Update

A.G. BARR p.l.c., the branded multi-beverage business with a portfolio of market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost.

Strong revenue and profit performance - positive business momentum

We are pleased to report an anticipated strong revenue and profit performance in respect of the full year ended 28 January 2024.

Revenue is expected to be c.£400m, representing c.26% year-on-year growth and c.7.6% on a like-for-like basis, excluding the contribution from the Boost Drinks business acquired in December 2022.

Adjusted profit before tax1 is now expected to be c.£49.5m, up 13.8% on the prior year (2022/23 : £43.5m) and slightly ahead of previous market expectations.

Despite the wet summer weather which impacted Q3 market conditions, our positive underlying brand momentum ensured a strong H2 Group performance :

Soft Drinks - including IRN-BRU, Rubicon and Boost

Inflation in the wider soft drinks market continued to drive value growth but impacted volumes within the sector. However, our brand building and pricing strategy delivered both value and volume growth, ensuring we continue to offer consumers great tasting and affordable brands.

FUNKIN Cocktails

Delivered a strong Q4 particularly in the off trade through an excellent performance in the ready to drink segment. While the on trade channel remains variable, with late night venues experiencing reduced footfall, reports of improved festive trading for a range of hospitality venues is encouraging as we look forward.

MOMA Foods

Further double-digit sales growth, supported by new business wins, most notably within the speciality coffee channel.

We continue to experience cost inflation albeit at a less significant level than in the prior year. Our supply chain capital investment programme is on track supporting the in-sourcing of the Boost and Rio brands. The associated operational leverage and synergy benefits are supporting the acceleration of our margin rebuild programme.

Roger White, Chief Executive, commented :

"All our teams across the Group have worked hard to deliver an excellent overall performance. This has been supported by continued brand investment, strong execution of our sales plans and progress across our supply chain improvement programme. We have positive momentum behind our brands and business as we enter the new financial year.

This strong trading performance, coupled with the benefits already being delivered by our margin rebuild programme, has ensured we close the year with a strong profit performance and confidence in the Group's long-term growth strategy."

Note 1 : Reported profit before tax is currently expected to be c.£50.3m reflecting the release of a £0.8m prior year accrual associated with the acquisition earn-out of Boost Drinks Limited in December 2022.