AG Barr PLC (LSE:BAG) said like-for-like revenue rose 19% during the first half of the year on the back of steady demand for its cocktail mixes and fizzy drinks.
The company, best known for its Scottish flagship brand Irn-Bru, expects revenue of £157mln for the 26 weeks ended 31 July 2022.
"Trading performance further benefited from the year-on-year Covid recovery across the market, particularly in the on-trade and out of home sectors, as well as the exceptional British summer weather in recent weeks," the company said in a trading update, but warned of potential headwinds in the second half.
"We anticipate that the UK's current high level of inflation will continue across the balance of the year, with economic conditions becoming increasingly challenging for consumers and industry alike."
"While not immune to the current cost inflationary pressures experienced across the UK, looking forward into the second half of the financial year, we remain confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations," said Roger White, chief executive.
In the year ended January 2022, the soft drinks manufacturer reported pre-tax profit of £41.5mln, up 26.5% from the previous year, while revenue rose 18.3% to £268.6mln.
Shares of the company fell slightly, down 0.37%, to 541.00p in morning trade.