Irn-Bru maker AG Barr Plc (LON:BAG) reported strong first half sales with revenue up 8% at £136mln though margins came under pressure.
"In the first half we increased our investment in support of our innovation and brand growth activity," it said In a trading update,
“This, combined with slightly later than anticipated phasing of price increases and generally higher operating costs, including the effect of weaker sterling on input costs, had a moderate impact on margins during the period."
The FTSE 250-listed soft drinks maker was bullish on the full-year performance despite what it described as an uncertain economic environment.
Like other soft drinks groups, pressure has been mounting for it to cut the amount of sugar in its products and a programme to achieve this will meet targets.
"We expect this programme to be completed by the end of the financial year (January 2018) as the reformulated products are phased in across the next six months," said Roger White, the firm's chief executive.
First -half sales were boosted by the Irn-Bru Xtra drink, which has now been launched in England and Wales, and Rubicon Spring, which is gaining distribution across multiple channels.
"We are well positioned to deliver against our expectations across the balance of the year," said White.
In mid-morning trading, shares in the company were unchanged at 601.5p.