Barr (A.G.) Share Price (BAG)

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bag - a.g. barr

4*

a.g. barr delivered a strong fy25/26 result, combining solid top-line growth with meaningful margin expansion and continued strategic progress. revenue increased 4.0% to £437.3m, while adjusted profit before tax rose 12.5% to £65.8m. the most encouraging feature of the result was the improvement in profitability, with adjusted operating margin increasing 120bps to 14.8%, moving the business firmly into its stated target range of 14–16%. this suggests that recent pricing discipline, efficiency measures and tighter cost control are beginning to translate into better quality earnings.the core investment case remains centred on the strength of barr’s brand portfolio, its cash generative model, and the opportunity to compound growth through both organic execution and bolt-on acquisitions. core brands irn-bru, rubicon and boost all remain strategically important...

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AG Barr delivered FY26 results in line with guidance, reflecting strong execution across its multi brand portfolio and maintaining a resilient outlook despite macro economic uncertainty. Strategic progress continued, underpinned by margin expansion and disciplined cash deployment.

Key financial metrics were robust. Revenue was £437m (+4% YoY), with adjusted PBT of £65.8m and EPS of 44.1p, while net operating cashflow exceeded £50m.

AG Barr’s strategy continues to deliver. Performance was driven by pricing realignment, brand led growth across IRN BRU, Rubicon and Boost, and operating leverage, supporting margin resilience alongside continued investment in capacity and acquisitions.

AG Barr’s share price has fallen over 10% in recent weeks on macro-economic concerns, but with 12-18 month hedging policies for commodity sourcing, we believe the business is well-placed to navigate any secondary inflation impact.

We reiterate our 800p Fair Value estimate, equating to 1.6x EV/Revenues, c.15x PER and a c.5% FCF yield (cal 2027).

Read research note here: https://www.equitydevelopment.co.uk/research/strong-momentum-into-fy27e-and-cash-resilient

"Brand-led, cash-generative and acquisitive" - initiation report from Equity Development freely accessible here: https://www.equitydevelopment.co.uk/research/brand-led-cash-generative-and-acquisitive

AG Barr is a leading UK beverage producer with a clear strategy for growth across its multi-brand portfolio including IRN-BRU, Rubicon and Boost. Revenue growth has reaccelerated to 5% in H226 and, with high operating margins of c.15% and excellent cash conversion, the group is well placed to grow organically and through acquisition.

As recently announced, the group has acquired the complementary brands Fentimans and Frobishers for a combined £51m, adding potentially c.10% to group revenues.

In this detailed report we review the attractive investment thesis for AG Barr and conclude that successful execution of management’s strategy will drive a further rerating.

We initiate coverage with an 800p Fair Value estimate, equating to 1.7x EV / Revenues, c.16x PER and a c.4.5% FCF yield (cal 2027).

Contact the Investor Relations team and CEO.

ir@agbarr.co.uk

euansutherland@agbarr.co.uk

Share price should be 30% higher IMO.

Why the drop at the end? Any ideas anyone?