AG Barr has said its Funkin cocktail mixers brand grew sales 25% in the year to 27 January and is now 50% bigger than when it was acquired in 2015.

It said the key on-trade business had grown volume and margins in each of its product segments (syrups, mixers and pureés) benefiting from continued cocktail growth. A £4.5m cash “earn-out”, which was accrued at the time of the acquisition, was paid to the previous Funkin shareholders during the financial year.

Across the group, AG Barr saw revenue grow 8% to £277.7m with statutory profit before tax up 4.2% to £44.9m.

The group said that 99% of its portfolio was now out of scope of the soft drinks industry levy.

Chief executive Roger White said: “Over the past 12 months we have delivered consistent broad-based sales growth across our portfolio, well ahead of the soft drinks market performance throughout the year, supported by successful innovation, strong core brands and further development of our partnerships.

“The UK economic landscape is expected to remain uncertain for business as a whole, with regulation, changing customer dynamics and consumer preferences adding further volatility for the soft drinks industry. We have a strong and flexible business model and a growing portfolio of brands, both established and nascent, which reflect the requirements of today’s changing consumers. We remain confident in our ability to capitalise on the opportunities to grow our business and deliver long-term value to shareholders.”

 

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