Health market to help AG Barr double in size – Daily Business

Euan Sutherland: doubling up

Irn-Bru manufacturer AG Barr is looking to the expanding healthy drinks sector as it aims to double the size of the business.

Following the acquisition of  Innate-Essence, Frobishers and Fentimans the Cumbernauld-based company said it sees “substantial growth opportunities” in the health and wellness sector as demand for alcohol dips.

The group is facing the coming year with confidence after posting a 4% rise in revenue to £437.3 million and adjusted profit before tax up 12.5% to £65.8m for the 12 months to the end of January.

Chief executive Euan Sutherland said : “Functional healthy hydration and premium socialising are expected to drive incremental growth, underpinned by health and wellness trends and the moderation in alcohol consumption. These structural drivers align directly with our innovation focus and recent portfolio expansion through M&A.

“Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business. Importantly, we are pursuing this ambition without changing our core business model, and with a continued disciplined focus on margin, ROCE and shareholder returns.”

Interim chair Susan Barratt said: “We are investing for the future through our manufacturing sites to improve both volume capacity and format capability. We are also focused on investing in talent at all levels of the organisation.

“The board is confident in the group’s ability to deliver growth ahead of the market whilst maintaining financial discipline and continuing to generate sustainable returns for shareholders.”

Cash generated from operations grew by 12.7% to £64.9 million, supporting a 11.0% increase in the full-year dividend to 18.71p per share, with net cash at bank standing at £41.6 m following acquisitions.

The company said it entered the new financial year with good momentum, expecting low double-digit revenue growth supported by recent acquisitions.

#Health #market #Barr #double #size #Daily #Business