AG Barr PLC (LSE:BAG) forecast that profits for the current year to January 2023 will be ahead of last year, although it cautioned that the cost-of-living crisis will put the brakes on household purchases.
The maker of drinks brands IRN-BRU, Rubicon and Funkin described its first-half performance as “strong”, with revenue in the 26 weeks to 31 July 2022 growing 16.7% to £157.9mln and adjusted pre-tax profit jumping 22.8% to £25.3mln.
Revenue rose by 12.3% across Barr Soft Drinks, while Funkin's sales were up 21.4%.
The company rewarded shareholders with an interim dividend of 2.5p, up 25% on last year.
"We made a very strong start to the year and continue to see good momentum across our business and brands,” said chief executive Roger White.
“That said, the UK's high level of inflation has accelerated across the summer and is creating a well documented cost of living crisis for many consumers, alongside increasing challenges for industry.
White said the company continues to take action to mitigate cost inflation.
“We anticipate in the coming months that the current economic environment will impact consumer purchasing behaviour, however we currently remain confident that our strategy and actions will allow us to deliver a full-year profit performance ahead of the prior year," he concluded.