The boss of Irn Bru manufacturer AG Barr said it has seen “strong momentum” over the past six months but is still facing rising pressure from price inflation and production costs.
The Scottish drinks firm said that rising CO2 prices, commodities and weakness in the pound are to blame for the current cost struggles.
AG Barr highlighted that revenues increased by 16.7% to £157.9 million over the six months to July 31.
Meanwhile, statutory pre-tax profits increased by 1.2% to £24.7 million, compared with the same period last year.
“We’re still seeing cost inflation, although the pressure on certain commodities, like aluminium, has somewhat receded,” chief executive of AG Barr, Roger White said.
“Carbon dioxide is something that has seen inflation but we have not had any issues regarding supply.
“We’ve been able to hold our prices, which is positive, and have been able to positively offset a lot of increases we are seeing through the supply chain.”
Mr White stressed that cost control and sales growth has allowed the company to protect profit margins.
“We made a very strong start to the year and continue to see good momentum across our business and brands.
“That said, the UK’s high level of inflation has accelerated across the summer and is creating a well-documented cost-of-living crisis for many consumers, alongside increasing challenges for industry.”
