47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 53
Strategic Report
Adjusting Items
Segmental Performance
In the year to 25 January 2025, the Group incurred
and separately disclosed a net charge of £5.3m
of pre-tax adjusting items (2023/24: £0.8m credit).
This charge has been included within operating
expenses but has been excluded from adjusted
profit before tax*. Adjusting items comprise
costs associated with our business change
programme to improve efficiency and unlock
growth. They include:
There are currently three reportable segments
in the Group:
• Soft drinks
• Cocktail solutions
• Other
Cash
cost
Route to market
£2.7m
changes – Ceasing
direct to customer
deliveries and moving
to a field sales model
Boost integration –
Integration of Boost
sales, marketing and
back office support
into the AG Barr
business
£0.9m
Total Adjusting Items
£3.6m
Non
cash
Total
charge
£1.7m £4.4m
– £0.9m
£1.7m
£5.3m
Both of the programmes have been completed
successfully and there are no further costs
associated with these initiatives.
In February 2025 we announced a reorganisation
to simplify our business around a single AG Barr
organisation. The new model will result in a
single, integrated drinks business that will simplify
processes, remove duplication and better
position us to meet our growth ambitions.
The associated costs of this integration are
anticipated to be in the region of c.£1m.
Soft drinks – Revenue up 6.4%, gross profit
up 7.6%
A strong performance from the soft drinks
portfolio, driven by a well-balanced contribution
from volume (+4.6%), price and mix. Distribution
gains and the deployment of improved revenue
and margin initiatives continue to deliver top and
bottom-line growth.
Corporate Governance
Accounts
“Our capital allocation
principles are consistent
with our strategic
ambition to consistently
grow our business.”
Our 3 core soft drink brands (IRN-BRU, Rubicon,
and Boost) contributed 66% of the total business
revenue and revenue increased 8.4% on the year.
The soft drink portfolio brands, which include
Barr Flavours, Rio, Bundaberg, KA and Simply
Fruity, contributed 22% of the total business
revenue and revenue increased 1.5% on the year.
Cocktail solutions – Revenue down (6.1)%,
gross profit down (3.9)%
FUNKIN continues to evolve into a branded,
consumer focused business with sustained
growth of its ready-to-drink (RTD) cocktail
range, which now constitutes approximately half
of its total revenue. However, despite strong RTD
performance, challenging market conditions led
to a year-on-year decline in on-trade revenue,
resulting in a 6.1% overall revenue decrease.
In February 2025 we announced a reorganisation
of our business which will see the FUNKIN and
soft drinks portfolio integrated into one AG Barr
operation. A single sales force and integrated
marketing model that will support the continued
delivery of our growth ambitions for all our brands.
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