Irn-Bru maker AG Barr serves up £437m in sales and sets out goal to double in size: shares fizz

Bosses at the Cumbernauld-headquartered group, famous for producing “Scotland’s other national drink”, also see growth opportunities as many drinkers look to moderate their alcohol consumption.

Chief executive Euan Sutherland told investors: “We are ambitious. Our strategy aims to deliver above market growth rates and double the business.”

He made the remarks as the iconic soft drinks maker reported full-year revenues of £437.3 million, a 4 per cent increase on the previous year. The figure was in line with a recent trading update.

Adjusted profit before tax in the year to January 31, 2026 rose 12.5 per cent to £65.8m. On a statutory basis, profits were up 17.7 per cent at £62.6m.

Adjusted operating margin came in at 14.8 per cent, up from 13.6 per cent the year before - again a result that was broadly in line with the earlier trading update.

The board is declaring a final dividend of 15.27p per share, bringing the total shareholder pay-out to 18.71p, an increase of 11 per cent on prior year. Shares in AG Barr were up 7 per cent in morning trade.

The group described the past 12 months as a period of “strong financial delivery and strategic progress”. The solid sales performance was said to reflect “pleasing performances and growing momentum” in the core soft drinks brands of Irn-Bru, Rubicon and Boost.

Sutherland said: “This was a year of significant strategic progress in which we also delivered on our targeted financial metrics.

“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 [merger and acquisition] strategy, support our ambition to deliver our target of sustainable, consistent top and bottom line growth.

“We entered [the new financial year] with good momentum and clear priorities, and expect to deliver a year of low double-digit percentage revenue growth supported by our recent acquisitions.

“Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business. Importantly, we are pursuing this ambition without changing our core business model.”

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Barr recently confirmed that it had swallowed “adult” soft drink brands Fentimans and Frobishers Juices for more than £50m, marking two of the Scottish firm’s biggest deals of recent times.

It said it had completed a deal for around £38m to buy Fentimans, in a move funded through a combination of cash and debt. The group, which was established 150 years ago and has a portfolio of 16 brands, said it had also closed a deal at the end of its financial year to January to buy Devon-based juice business Frobishers for £13m.

In its full-year results statement, Barr noted: “The integration of recent acquisitions - Frobishers Juices and Fentimans (post period end) - is well underway and progressing to plan, leaving us well positioned to realise targeted operational efficiencies from [the second half] and in the coming years.”

Interim chair Susan Barratt said: “AG Barr enters the new financial year with momentum. Considerable work has been completed over the past year to lay strong foundations for future growth.

“The board expects the coming year to demonstrate further strategic progress, with clear milestones across innovation, channel expansion, and execution of our growth strategy through integration of recent acquisitions.

“We are investing for the future through our manufacturing sites to improve both volume capacity and format capability. The board is confident in the group’s ability to deliver growth ahead of the market while maintaining financial discipline and continuing to generate sustainable returns for shareholders.”

Mark Crouch, market analyst for investment platform eToro, said: “Shares in AG Barr have gained a touch of extra sparkle, as the maker of Irn-Bru demonstrates it can still mix a compelling blend of steady growth and margin expansion in an increasingly competitive market.

“While revenue rose a respectable 4 per cent, the real fizz came through in profitability, with disciplined cost control and efficiency gains lifting adjusted profit before tax by 12.5 per cent and pushing margins up to 14.8 per cent, comfortably ahead of expectations.

“The group’s core brands, including Rubicon and Boost, continue to do much of the heavy lifting, supported by expanded distribution, targeted brand investment and a more active innovation pipeline.

“Encouragingly, cash generation remains strong, underpinning both strategic flexibility and a rising dividend, even as the company invests for future growth. Recent additions such as Frobishers and Fentimans should deepen its presence in health-conscious categories.

“Investors remain cautious however, as a more price-sensitive consumer backdrop and lingering input cost inflation could yet take some of the fizz out of margins if pressures intensify,” he added.

AJ Bell investment director Russ Mould noted: “There was some real fizz behind Irn-Bru maker AG Barr’s latest results. Revenue growth was solid but what really impressed was the improved profitability, with margins expanding significantly.

“This was supported by an exit from the less profitable water segment with Barr using acquisitions to expand its footprint in energy and wellness drinks. Management signalled real confidence in the outlook, despite the uncertain consumer backdrop, with a double-digit increase in the dividend.

“A favourite drink is the kind of affordable treat which people can continue to justify even when their capacity to spend on bigger ticket items is constrained.”

Change at top after 20 years for Irn-Bru maker AG Barr as sales hit record £400 million