47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 52
A.G. BARR p.l.c. Annual Report and Accounts 2025
FI N A N C I A L R E VI E W
A strong performance across all
core financial metrics. Revenue and
profit growth combined with operating
margin improvement provides further
evidence that the Group’s long-term
strategy is delivering.
Stuart Lorimer
Chief Finance and
Operating Officer
Overview
The business has delivered another set of very
pleasing financial results. A strong performance
across all core financial metrics in a year where
we have upweighted investment in both revenue
growth drivers and manufacturing infrastructure
to ensure we remain fit for the future.
Revenue grew 5.1% to £420.4m led by soft drinks.
The growth was broad-based across the
portfolio, driven by a good balance of pricing,
product mix and volume growth. A positive
performance against a backdrop of poor weather
and a challenging economic environment.
Our commitment to improve operating margin
continues to be delivered from a combination
of organisational simplification, supply chain
efficiency and on-going strong cost discipline.
These initiatives delivered a 130bps improvement
in adjusted operating margin* and contributed to
an adjusted profit before tax* of £58.5m, up 15.8%
on the prior year (2023/24: £50.5m). Reported
profit before tax was £53.2m (2023/24: £51.3m).
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Significant and sustainable cash generation
continues to support a net cash positive balance
sheet. This strong balance sheet and our
consistent focus on disciplined capital allocation
has enabled the business to fund investment
plans that will drive growth and productivity.
£48.3m of cash generated from operations was
after a significant increase in brand investment.
It funds capital expenditure* of £19.2m and gives
the confidence to recommend a 12.0% increase
in the full year dividend in line with our
progressive dividend policy. We ended the year
with £63.9m net cash in bank* (2023/24: £53.6m).
This, combined with debt capacity headroom of
up to 2.5x EBITDA provides significant financial
resilience as well as the flexibility for continued
organic investment and potential M&A.
Our ongoing investment in our brands, asset
base and people combined with our strong track
record of delivery reinforces our confidence that
the business will continue to grow and create
value in line with our strategic ambition.
