A.G. BARR p.l.c.

Revenue increased 8.5% to GBP 247.4 million. Profit before tax rose 2.6% to GBP 36.1 million, while operating margin was 15% and ROCE was expected to finish within the 19%-21% target range, at the lower end. Gross margin was diluted by acquisitions and corrective action to support service recovery, but management expects a stronger gross margin in H2 as synergies and efficiencies come through. Net bank debt ended at GBP 47 million after GBP 23.4 million of CapEx, GBP 40.5 million of M&A spend, and a GBP 17 million final dividend. For the full year, management guided to around 10% revenue growth, operating margin slightly above H1, PBT of GBP 71 million to GBP 72 million, cash CapEx of about GBP 40 million, and net bank debt of GBP 10 million to GBP 20 million.

Euan Sutherland said the company made strong progress on strategy in H1, with core brands performing well, innovations outperforming expectations, and Fentimans/Frobishers integration completed on plan. He emphasized that the short-term supply issues are now resolved and described the supply chain as stronger and more efficient going into H2. His tone was confident and steady, repeatedly pointing to market-share gains, improved brand momentum, and confidence in meeting full-year expectations.

Stuart Lorimer focused on the company’s financial discipline and stated that revenue reached GBP 247.4 million, PBT was GBP 36.1 million, and operating margin held at 15%. He said gross margin was pressured by acquisitions and recovery actions, but H2 should improve as integration synergies and operating efficiencies flow through. On capital allocation, he cited GBP 23.4 million of CapEx, GBP 40.5 million of M&A spend, a GBP 17 million final dividend, and a year-end net bank debt position of GBP 47 million; he also noted full-year cash CapEx of approximately GBP 40 million and about GBP 3 million of adjusting costs tied mainly to Fentimans integration.

Analysts asked whether medium-term targets are unchanged, and management said yes, explicitly recommitting to them. On full-year revenue confidence, Euan said they are “very confident,” citing improved availability and customer service and saying the business should be back to where it needs to be by the end of Q3. Management also explained that Fentimans and Frobishers integration covered logistics, warehousing, marketing, sales, and brand-building, and said FUNKIN and MOMA are non-core but still being reviewed as part of the portfolio.