Irn-Bru maker posts higher profits as it shifts to health and wellness drinks
The maker of Irn-Bru reported higher profits last year amid a cost-cutting drive and shift towards health and wellness drinks.
AG Barr reported a 4 per cent rise in revenues to £437.3million in the year to 31 January 2026, driven by growth in its core brands Irn-Bru, Rubicon and Boost.
Adjusted pre-tax profits were up 12.5 per cent, which helped to push margins up to 14.8 per cent, well ahead of expectations.
AG Barr said its ‘pleasing performance’ was driven by diversification of its drinks portfolio.
Its biggest brand, Irn-Bru, now represents 32 per cent of revenue compared to 43 per cent five years ago.
It comes just a year after the drinks giant announced plans to discontinue its ‘low-margin’ Strathmore bottled water brand, which was eventually sold to Welsh bottler Ty Nant in July 2025.
Shares in AG Barr rose 6.8 per cent to 659p this morning.
Wellness push: The Irn-Bru maker ditched low-margin water brand Strathmore and bought three premium and health brands
The drinks maker said it saw ‘substantial growth opportunities’ in health and wellness drinks and ‘premium socialising’ as consumers moderate their alcohol consumption.
AG Barr has already bulked up its presence in the categories through its acquisitions of Frobishers Juices, Fentimans, and Innate-Essence.
‘All three transactions are aligned with our strategy to grow both our existing brands and through M&A in higher growth segments,’ it said.
Chief executive Euan Sutherland added: ‘We entered 2026-27 with good momentum and clear priorities, and expect to deliver a year of low double digit percentage revenue growth supported by our recent acquisitions.
‘Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business.’
AG Barr remained confident in its outlook for the year, with an 11 per cent increase in its final dividend to 18.71p per share.
It said the direct impact of the Middle East conflict is ‘confined to the current energy cost spikes’ and has no revenue or supply chain exposure to the Middle East.
Mark Crouch, market analyst for eToro, said: ‘Encouragingly, cash generation remains strong, underpinning both strategic flexibility and a rising dividend, even as the company invests for future growth.
‘Recent additions such as Frobishers Juices and Fentimans should deepen its presence in health-conscious categories.
‘Investors remain cautious however, as a more price-sensitive consumer backdrop and lingering input cost inflation could yet take some of the fizz out of margins if pressures intensify.’
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