Summer sun helps drinks firm AG Barr post profit rise

The firm, which in July had an improved offer rejected for an all-share merger with larger rival Britvic, said today pretax profit in the six months to July 28 was £16.6m, up from £14.8m a year ago.

That figure was in line with analysts’ consensus of £16.65m, according to a Reuters poll.

First-half sales of brands including Rubicon, Orangina, and Irn-Bru, the fizzy orange drink that outsells Coca-Cola in Scotland, rose 5.8 per cent to £128.7m, ahead of 4.5 per cent for the total soft drinks market, according to Nielsen.

The market growth rate in the second quarter was more than double that of the first quarter as Britain bathed in sunshine, boosting trade for retail and consumer goods firms.

AG Barr, which competes with the likes of Britvic, Nichols and Coca-Cola, said it was confident of meeting its full-year expectations, although it expected second-half trading to remain challenging as industry price promotions intensify. AG Barr has a sales office in Sheffield.

Shares in the company closed at 525 pence on Friday, up 15 per cent on a year ago, valuing the business at £614m.