Published 28th Mar 2023, 16:45 GMT

The drinks group acquired Leeds-based Boost Drinks Holdings for an initial consideration of £20 million in December of last year, purchasing the business from husband and wife founding team Simon and Alison Gray.

Cumbernauld-based A.G BARR, which also holds the Funkin cocktail brand within its portfolio, reported adjusted profits before tax rising to £43.5 million, a 13 per cent increase on last year.

Roger White, CEO of A.G BARR, noted how despite a strong performance, the firm expects a “short-term” dip in operating margins.

A. G. Barr Chief Executive Roger White. Picture by Stewart Attwood.

He said: “Over the past 12 months we delivered an excellent financial performance and made significant progress across our strategic objectives. Our strategy to build and develop a multi-beverage portfolio capable of significant long-term growth is progressing well. We are now in an investment phase, designed to capitalise on the strategic growth opportunities ahead.

“We do anticipate a short-term impact on operating margins, as a result of the combination of this investment, ongoing inflationary cost pressures, and the initial dilutive impact from the Boost acquisition.”

Adjusted operating margin for the firm fell from 14.9 per cent to 13.6 per cent for the year. The firm’s revenue rose 15.9 per cent on a like-for-like basis, while net cash at bank fell 22.7 per cent to £52.9 million.

The announcement comes as A.G BARR publishes its full year results for the year ended January 29, 2023.

Last year also saw the firm acquire oat drink maker MOMA. In December, A.G BARR announced that it has acquired the remaining 38.2 per cent equity stake in MOMA for £3.4 million. This came after A.G BARR acquired a 61.8 per cent stake in the firm in December of the year prior.

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