AG Barr has reported a 17% year-on-year rise in revenue, from £268.6m to circa £315m.
The Cumbernauld-based drinks producer's financial statement for the year ended 29 January 2023 revealed that this figure was strengthened by an eight-week contribution from the Boost brand, which was acquired on 5 December - as well as a full year of contributions from the now fully-acquired MOMA drinks company.
However, as anticipated, "the inflationary backdrop across the UK continued across the second half of our financial year", with action taken to mitigate these cost pressures.
Further revenue growth is anticipated this year, despite continued high inflation "and the planned introduction of a Deposit Return Scheme in Scotland in August, both of which have the potential to impact consumer behaviour".
The statement noted that internal implementation planning for DRS is "well advanced" and the board believes its strong brand portfolio and ongoing actions to mitigate inflation will support the delivery of growth ambitions.
AG Barr's chief executive Roger White commented: “This positive performance has been supported by continued brand investment and great sales execution.
“We have accelerated the development of the business, further building our portfolio of differentiated brands with the acquisition of Boost and taking full ownership of MOMA.
“As we enter a new financial year we are well placed to continue to develop and grow through our clear and consistent value-driven strategy.”
John Moore, senior investment manager at RBC Brewin Dolphin, commented: “AG Barr is continuing its positive momentum, with profits for the year expected to be ahead of market consensus.
“Cost inflation continues to be a theme, but the business is mitigating its impact on margins through a range of self-help measures.
“The new brands are also supporting sales growth and seem to be bedding in well - with a strong cash position, further additions to AG Barr’s stable could be in the offing as smaller peers struggle in the current environment.”
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