AG Barr - Strong momentum into FY27E and cash-resilient
AG Barr delivered FY26 results in line with guidance, reflecting strong execution across its multi brand portfolio and maintaining a resilient outlook despite macro economic uncertainty. Strategic progress continued, underpinned by margin expansion and disciplined cash deployment.Key financial metrics were robust. Revenue was £437m (+4% YoY), with adjusted PBT of £65.8m and EPS of 44.1p, while net operating cashflow exceeded £50m.
AG Barr’s strategy continues to deliver. Performance was driven by pricing realignment, brand led growth across IRN BRU, Rubicon and Boost, and operating leverage, supporting margin resilience alongside continued investment in capacity and acquisitions.
AG Barr’s share price has fallen over 10% in recent weeks on macro-economic concerns, but with 12-18 month hedging policies for commodity sourcing, we believe the business is well-placed to navigate any secondary inflation impact.
We reiterate our 800p Fair Value estimate, equating to 1.6x EV/Revenues, c.15x PER and a c.5% FCF yield (cal 2027).
A.G. Barr is engaged in the manufacture, distribution and sale of soft drinks. Co. operates in three segments: carbonates, still drinks and water, and other (including Funkin cocktail, ice-cream and other soft drinks). Co.'s brands include IRN-BRU, Rubicon, Strathmore, Funkin, Barr Flavors, KA, and Tizer, and its partnership brands include Rockstar and Snapple.
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