HIghlights:

  • BAG’s revenue grew by c.4% to c.GBP 437m year-on-year.
  • Adjusted operating margin rose to c.14.7%, up 110 bps.
  • Adjusted return on capital employed maintained at c.20%.

A.G. Barr PLC (LSE:BAG), the UK-based multi-beverage company behind iconic brands such as IRN-BRU, Rubicon, and Boost, has released its trading update for the financial year ended 31 January 2026 (FY25/26). The update outlines financial performance, operational progress, and recent acquisitions ahead of its final results announcement on 31 March 2026.

Revenue Growth and Profit Expansion

The Company reported revenue of approximately GBP 437 million for FY25/26, representing a 4% increase from GBP 420 million in the previous year. Adjusted operating margin improved to around 14.7%, up 110 basis points from 13.6% in FY24/25, supporting double-digit profit growth. Adjusted return on capital employed remained at the target level of about 20%, maintaining performance consistency.

Operational and Strategic Progress

Marketing and distribution initiatives contributed to modest growth for IRN-BRU in the second half of the year, following a flat first half. Rubicon and Boost delivered positive performance, offsetting a decline in FUNKIN. The Company expanded its innovation pipeline, with several new product launches scheduled from January 2026.

Investments in manufacturing sites continued, enhancing capacity and capability while remaining on budget. These operational enhancements aim to support the long-term execution of the Company’s strategic initiatives, including brand innovation, channel expansion, and supply chain efficiency.

Acquisitions Expand Portfolio

A.G. Barr completed the acquisition of Frobishers Juices Ltd for GBP 13 million towards the end of FY25/26, funded from the Company’s net cash position. Post-period, the acquisition of Fentimans Ltd, known for its “Botanical Brewing” process, was completed on 2 February 2026 for approximately GBP 38 million, funded through a combination of cash and debt.

Both acquisitions target the growing Adult Soft Drinks market, which is benefiting from the trend of reduced alcohol consumption. Integration of Frobishers and Fentimans is planned for FY26/27, with expected efficiency gains beginning in the second half of the year. Brand activity will continue, including redesigns of IRN-BRU and Rubicon and further product innovation.

A.G. Barr’s FY25/26 update demonstrates steady revenue growth, margin improvement, and strategic expansion through acquisitions. With operational investments and a robust brand innovation pipeline, the Company is positioned to build momentum in FY26/27 and continue broadening its market presence across the UK and Adult Soft Drinks category.