UK's A G Barr interim revenue rises 8.5% on core brands and acquisitions

By Reuters News


Overview

  • UK soft drinks maker's interim revenue rose 8.5% on core brand growth and acquisitions

  • Adjusted EPS for the period up 0.4%, with adjusted profit before tax up 2.6%

  • Supply chain issues impacted summer sales but were resolved by period end


Outlook

  • A.G. Barr expects FY revenue growth of about 10%

  • Company sees FY adjusted operating margin around 15%

  • A.G. Barr expects FY capital expenditure of about £40 mln


Result Drivers

  • CORE BRAND GROWTH - Co said revenue growth was driven by strong performance of IRN-BRU, Rubicon and Boost, supported by rebranding, innovation and marketing

  • ACQUISITIONS - Recent acquisitions Fentimans and Frobishers contributed to revenue growth and expanded presence in functional and premium segments

  • SUPPLY CHAIN ISSUES - Internal and external supply chain disruptions during summer peak constrained revenue, but were resolved by period end


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 247.40 mln

H1 Adjusted EBIT Margin

15.00%

H1 Adjusted Pretax Profit

GBP 36.10 mln

H1 Dividend

GBP 0.04

H1 Pretax Profit

GBP 33.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

  • Wall Street's median 12-month price target for A.G. Barr p.l.c. is GBp800.00, about 33.6% above its September 28 closing price of GBp599.00

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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