The owner of Irn-Bru, Rubicon, and Boost reported a 4% increase in revenue for the year ending January 31, 2026, reaching £437 million compared to £420 million in FY2024/25.
The Scotland-based company attributed its success to the “pleasing performances” and “growing momentum” of its primary soft drink brands, alongside “efficiency and strong cost discipline,” all of which significantly contributed to favorable outcomes.
With an adjusted operating margin improvement of 1.2 percentage points to 14.8%, the company saw its adjusted profit before tax rise by 12.5% to £65.8 million, up from £58.5 million the previous year.
Euan Sutherland, the Chief Executive, indicated that the firm is entering FY26/27 with “good momentum and clear priorities,” especially with the anticipated enhancement of its soft drinks line following the acquisition of Fentimans and Frobishers for a total of £50 million.
Sutherland elaborated, “We have strengthened the foundations of the business and stepped up our investment in brand development, commercial capability, and our operations to ensure we can consistently sustain high levels of performance. These actions, supplemented by a more meaningful M&A strategy, support our ambition to deliver our target of sustainable, consistent top and bottom line growth.”
Freetrade analyst Duncan Ferris remarked on the results, stating, “While AG Barr had already assured investors that full-year performance bubbled up in line with expectations, today’s dividend increase offers an immediate positive. However, focus is squarely on its next steps.”
He added, “Dynamism and diversification seem to be the orders of the day. The revamp of Irn-Bru ZERO and the recent acquisitions of adult soft drink businesses Frobishers and Fentimans show a company broadening its reach instead of leaning too heavily on its core brand.”
Ferris highlighted that “AG Barr’s fresh acquisitions give it greater exposure to the beverage sector’s premiumisation trend, and should improve the business’s resilience at a time when consumer confidence is flagging.”
He continued, “But what really matters here is that the broadened portfolio translates into sustainable growth and margin improvement, and moves the company closer to its goal of doubling in size while outgrowing the market.”
In the upcoming financial year, AG Barr anticipates low double-digit growth in revenue, partly fueled by its recent high-profile additions to the brand lineup.
The company also plans to enhance its core soft drinks range through expanded distribution, strategic brand updates, and a series of new product launches over the next period.
Sutherland remarked, “This was a year of significant strategic progress in which we also delivered on our targeted financial metrics.”
He affirmed his expectation for low double-digit revenue growth due to recent acquisitions.
“Our strategy aims to deliver above-market growth rates and realize our ambition of doubling the size of the business. Importantly, we are pursuing this ambition without changing our core business model, and with continued disciplined focus on margin, ROCE and shareholder returns.”
