(Alliance News) - AG Barr PLC on Tuesday predicted further growth ahead, with the margin rebuild underway, after profit in 2023 nudged past analyst expectations.
Shares in AG Barr, the owner of soft drinks brands such as Irn-Bru, Rubicon, Funkin and Boost, rose 4.7% to 538.00 pence in London on Tuesday morning.
In the year to January 28, AG Barr said pretax profit rose 16% to GBP50.5 million from GBP44.4 million the year prior, on revenue up 26% to GBP400.0 million from GBP317.6 million.
As expected, the operating margin was impacted by the 2022 Boost acquisition. The adjusted operating margin declined to 12.3% from 13.6%.
Earnings per share advanced 14% to 34.59 pence from 30.47p, while the annual dividend was increased 15% to 15.05p per share from 13.10p.
Analysts at Stifel said pretax profit was around 2% ahead of expectations, a "positive indicator that the multi-year margin rebuild plan is on track."
AB Barr said like-for-like revenue growth, excluding the Boost acquisition, was 8.0%, driven by core brand distribution gains and revenue management.
Strong revenue and volume growth was seen across the soft drinks portfolio, with a standout performance from the Rubicon brand, the company said.
AG Barr reported good progress on a number of fronts in the first full year of ownership of the Boost business alongside the acquisition of the Rio tropical fruit drinks brand.
It said the margin rebuild plan was well underway, accompanied by strong cash generation and balance sheet strength.
Chief Executive Roger White said: "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."
The results are one of White's last actions as CEO. Last August, White announced he would step down in April.
He will be replaced by Euan Sutherland, the former CEO of Saga PLC.
On Tuesday, AG Barr also announced that Commercial Director Jonathan Kemp will step down on May 31, after the firm's annual general meeting.
Kemp will remain available to the company as required for a further twelve month period following which he will retire from the business.
By Jeremy Cutler, Alliance News reporter
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