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

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

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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(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.)