English sales add fizz and sparkle to Barr's shares

Published on Tuesday 29 September 2009 21:16

SHARES in AG Barr rose more than 11 per cent yesterday after the Irn-Bru maker unveiled a double-digit rise in sales.

The soft drinks maker racked up revenues of 104.7 million for the six months to 1 August, a rise of 27.1 per cent, boosted by the acquisition of London-based fruit drinks specialist Rubicon.

Barr's like-for-like sales were up 11.5 per cent.

The 61m Rubicon deal was the culmination of a plan to broaden Barr's brand offering, which began in earnest with the acquisition of bottled water company Strathmore in 2006.

While analysts say the company's portfolio is now greatly improved, chief executive Roger White said he would still consider more acquisitions.

"We still believe we can add value by bringing the right brand or brands into the business," he added.

A string of analysts upgraded forecasts on the iconic soft drinks group yesterday, after pre-tax profit came in about 1m ahead of expectations at 13.5m, a 20 per cent increase. White said sales across the group had been "steady" in Scotland, with most of the growth coming in England and Wales.

Sales of Irn-Bru products, which account for about half of group sales, continued to drive much of the headline growth, up 6.5 per cent during a period when overall sales of carbonated drinks rose by just 1 per cent.

Barr's sales network has been boosted by the integration of the Rubicon team, but White said it also benefited from increased promotion.

In February, the firm signed a deal for Irn-Bru to become an official sponsor of UK rugby league. Sales of the drink in the sport's heartland appeared to see a significant boost, with market share in the north-east and north-west of England up 25 per cent and 17 per cent respectively.

White said: "We're seeing stronger performance in that area, and undoubtedly some of that is the increased visibility of the brand."

AG Barr was the biggest riser in the FTSE-350 yesterday, with its shares closing up 85.5p or 11.4 per cent at 835p.