Irn Bru-owner AG Barr PLC (LSE:BAG) lifted its full-year profit guidance on Thursday after beginning to feel the benefit of a series of acquisitions made over the last few years.
Pre-tax profits are expected to reach £49.5 million for the 12 months to 28 January 2024, representing a 13.8% year-on-year jump and a slight rise on market consensus.
Revenues rose around 26% to reach £400 million after both its Funkin Cocktail and MOMA Foods brands performed positively.
Funkin Cocktail was acquired by the Scottish manufacturer back in 2015, while a 100% purchase of MOMA Foods was completed at the end of 2022.
Funkin Cocktail experienced “excellent” momentum in the off-trade sector during the fourth quarter, offsetting weaker on-trade trends, as bars and clubs continue to suffer from reduced footfall.
Cost inflation continues to affect the group, albeit on a less significant basis than in 2023, but it hasn’t stopped MOMA Foods, the oat milk brand, from achieving double-digit sales growth.
Roger White, the group’s chief executive officer, said: “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."
New CEO
AG Barr also confirmed White’s replacement in Euan Sutherland, with the current boss having announced his intention to leave back in August last year.
Sutherland will take over as chief executive at the start of May 2024, having had experience as the CEO of Saga, Superdry and The Coop Group.
"I am very excited to join AG Barr, which has a unique heritage, strong culture and exceptional brands,” Sutherland said in a statement.