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(Sharecast News) - British beverages and energy drinks maker AG Barr beat its own guidance with a 16.1% jump in full-year profits in 2023 as it managed to outperform the wide soft drinks market.
The company, whose brands include Irn Bru, Rubicon and Boost, reported an adjusted pre-tax profit of £50.5m, up from £43.5m in 2022 and ahead of its own, recently upgraded guidance of £49.5m.
As expected, adjusted operating margins fell by 130 basis points to 12.3% reflecting the dilution from acquisitions of brands Boost energy drinks and MOMA oat milk during the year. The company said the production in-sourcing of Boost and Rio, also acquired last year, should help margins improve.
Revenues were up 8% on a like-for-like basis but, when including a full year contribution from the Boost portfolio, surged 25.9% to £400m, helped by strong revenue and volume growth across the soft drinks portfolio, with a standout performance from the Rubicon brand.
The wider UK soft drinks market increased in value by 8.3% during 2023 while volumes fell 2.9%, according to Circana data, as high levels of price inflation continued from 2022.
Chief executive Roger White commented: "With our business in a strong financial position, and our portfolio of differentiated brands poised for further growth, I have every confidence that our proven strategy, our results-driven teams and our well-invested asset base will continue to support long-term growth and value creation."
The board recommended a final dividend of 12.4p per share, taking the total payout for 2023 to 15.05p, up 14.9% on the previous year.
House broker Shore Capital said the results "make for pleasant reading [...] confirming an excellent strategic and financial performance". The broker lifted its forecasts for AG Barr for 2025 and 2026 by around 10%.
