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Food & drink

AG Barr splashes out with special dividend as profits beat pre-COVID levels

The maker of Irn-Bru and Rubicon said brand resilience and a general market recovery led to strong cash generation and a robust balance sheet

Beverage maker AG Barr PLC (LSE:BAG) has reported profits above pre-COVID levels for the year to end January, backed by strong sales growth as the beverage maker recommenced the payment of dividends, including a special one-off payment.

AG Barr, which produces and markets drinks including Irn-Bru, Rubicon and Funkin, hailed brand resilience, investment in innovation and a general market recovery for the strong cash generation and a robust balance sheet during the year.

Revenue in the 53 weeks to 30 January 2022 rose 18.3% year-on-year to £268.6mln, while statutory profit before tax was up 62.3% at £42.2mln.

"We have accelerated our revenue growth and consequently delivered a strong financial performance. In the year, we have recommenced our dividend, alongside paying a one-off special dividend, and our balance sheet has continued to strengthen,” said chief executive Roger White in the statement.

The company proposed an interim dividend of 2p, and final and special dividends of 10p each.

White said there is "significant inflationary pressures" on the company and its peers, but said AG Barr is "well placed as a group to deal with these and will continue to seek to manage our exposure proactively through mitigating actions across revenue management, pricing, procurement and cost control"

He said there would be further investment in brands, people and infrastructure to continue growth, and said he remained "confident in our ability to deliver continued growth in both revenue and profit in the coming year".

In early trading, AG Barr shares fizzed up nearly 2% to 550.74p.

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