AG Barr expects first-half revenue to climb eight per cent to around £246m, despite supply constraints wiping an estimated £10m from sales during the period.

The Irn-Bru and Rubicon owner said revenue for the 26 weeks to 1 August was up from £228.1m a year earlier, supported by growth across its core brands and contributions from recent acquisitions.

However, sales were held back during the second quarter by reduced stock availability linked primarily to internal supply chain disruption arising from its manufacturing capability and capacity programme.

The drinks group was also affected by problems at third-party manufacturers, with the combined issues estimated to have reduced first-half revenue by £10m.

AG Barr said the constraints were being resolved and maintained its full-year profit expectations.

It now anticipates double-digit percentage revenue growth for the year, supported by stronger availability, market share gains and new product launches.

First-half operating margin is expected to land in the middle of the company’s guidance range, before strengthening during the second half as integration and insourcing benefits come through.

Chief executive Euan Sutherland said: “During the first half of the year we made significant progress against our strategic priorities.

“We completed the integrations of both Frobishers and Fentimans, continued to successfully drive our core brand propositions and made further progress with our manufacturing investment programme.

“Consumer demand for our brands is strong, with all core brands gaining market share.

“The supply constraints which impacted Q2 performance are being resolved and, with strengthening trading momentum driven by our refreshed core brands and new product development, we remain confident for the full year.”

Irn-Bru and Boost drive market share gains

AG Barr said its core drinks brands entered the second half with strong momentum following distribution gains, product launches and increased marketing investment.

Irn-Bru grew ahead of the wider market in both England and Scotland, with its strongest performance in England following the rebrand of Irn-Bru Zero.

Rubicon’s trading improved as the half progressed, supported by refreshed branding and new product development.

Boost delivered double-digit growth as it expanded further into grocery and entered the healthy hydration market with Boost Water+.

Growth across the three core brands was partly offset by weaker performances from Funkin and Barr Brands.

AG Barr said recent market data showed the business growing ahead of the wider soft drinks category.

Fentimans and Frobishers integrations completed

The drinks group completed the integrations of Fentimans and Frobishers during the half, in line with its timetable.

Operational efficiencies from both deals are expected to begin supporting margins during the second half.

AG Barr acquired premium soft drinks maker Fentimans and juice brand Frobishers as it sought to broaden its portfolio beyond its established carbonated drinks business.

The company said its wider manufacturing investment programme remained on schedule and within budget.

Production of Boost Sports was brought in-house at its Cumbernauld factory at the end of the half, while a planned capacity upgrade at its Milton Keynes site is continuing as expected.

AG Barr will publish its full interim results on 29 September.

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