AG Barr says it remains on track to meet full-year market expectations, with the IRN-BRU maker expecting faster growth in the second half.
Analysts are pencilling in adjusted pre-tax profit of £71.5 million for the year to January 2027.
The company is guiding to revenue growth of about 10%, an adjusted operating margin of about 15% and a return on capital employed of about 19%.
It says momentum has continued into the early months of the second half, helped by strong demand and cost savings from recent acquisitions.
Summer supply snags
Part of that second-half lift should come from fixing problems that dogged the summer.
Supply chain issues, linked mainly to changes at its factories and partly to third-party manufacturers, cost the company an estimated £10 million in lost revenue during the peak season.
These have been resolved, with stock availability returning to normal.
Revenue still rose 8.5% to £247.4 million in the 26 weeks to 1 August, helped by the acquisitions of Fentimans and Frobishers.
Adjusted pre-tax profit edged up 2.6% to £36.1 million, while the adjusted operating margin held at 15.0%.
Statutory pre-tax profit fell 3.7% to £33.9 million, reflecting one-off costs of integrating Fentimans.
Higher fuel costs linked to the Middle East conflict were not fully passed on to customers, though the company is now fully hedged on the commodities it can hedge through this year and well into next.
Beating the market
AG Barr's sales grew 7.2% in value, ahead of a UK soft drinks market that expanded 6.7%, according to Circana data.
IRN-BRU's football campaign during Scotland's World Cup appearance set records for the brand across TV, digital and social channels.
Boost Water+, a zero-sugar functional water, has sold well ahead of expectations.
Not everything fizzed: FUNKIN cocktail mixers and Barr Brands struggled, and a supplier fault forced a recall of MOMA porridge.
Net bank debt stood at £47.0 million, against net cash of £41.3 million a year earlier, after the £40.5 million Fentimans deal and heavy factory investment.
The interim dividend rises 11% to 3.82p.
