*Items marked with an asterisk are Alternate Performance Measures. These are non-GAAP measures used by management to assess the Company's operating performance and to inform decisions. Definitions and relevant reconciliations are provided later in this announcement. 

About A.G. BARR: 

A.G. BARR (LSE: BAG, FTSE250) is a UK-based branded multi-beverage business with a diverse and differentiated portfolio of 16 brands, including IRN-BRU, Rubicon and Boost. Established 150 years ago in Scotland, the Company now operates across the UK, and with export markets throughout the world. A.G. BARR is committed to being a brand owner and builder, with the ambition of doubling the business through a flywheel of consistent growth. 

https://www.agbarr.co.uk/

Chair Statement

Overview

FY25/26 has been a year of strong strategic progress and financial delivery for AG Barr. The Board is pleased with the business' performance and results in the year and are confident of delivering further progress, in line with our growth plans, in FY26/27 and beyond.

Market context & strategic progress

Across the year the soft drinks market once again demonstrated its resilience. It remains a large, growing category with helpful defensive characteristics as a low-cost everyday purchase for consumers - even during periods of economic uncertainty. At the same time, consumer preferences are evolving and our operating environment continues to change, creating both opportunities and challenges for the Group. Navigating input cost volatility, highly competitive markets and regulatory developments requires careful oversight and disciplined execution.

The Board believes AG Barr is well positioned in the market with defined strategic growth drivers, operating excellence and a track record of financial discipline. The Group combines an increasingly diversified portfolio of market-leading UK brands, strong cash generation, a robust balance sheet and an integrated operating model with control over supply chain and customer service. We continue to build on the strengths of our established business model. 

During the year, the business increased levels of commercial and operational investment to drive growth. We carefully considered the impact of pricing strategy across our brands, and actions were taken to strengthen our brand equity and ensure margin discipline. While these decisions had a short-term negative volume impact, they were taken with a clear focus on delivering sustainable, profitable growth over the long-term.

In terms of brands and the customer proposition, the Board regularly reviews brand performance metrics, the innovation pipeline and consumer trends to ensure that the portfolio remains aligned to structural growth opportunities. The Board also regularly evaluates M&A opportunities, which this year included expansion into the functional healthy hydration and premium socialising soft drinks segments through three acquisitions.

Our Capital Markets Day in June 2025 was an important milestone in articulating our refreshed strategy and ambition.  We are ambitious for growth and are confident in both the market opportunity and in the Group's capabilities to deliver our strategy.  We are committed to providing clear and transparent updates on our progress.

Board

Strong governance remains a priority. Dr Rohit Dhawan joined the Board as a Non-Executive Director during the year, bringing valuable experience and perspective, particularly with regards to data, AI and digital transformation across consumer industries.  We also announced that Mark Allen OBE stepped down from the role of Non-Executive Chair due to other increased commitments. I would like to thank Mark for his contribution during his five years with the business and wish him every success for the future. The Board has initiated an independent process to put in place a new Non-Executive Chair, and this is progressing in line with expectation. I will act as Interim Chair until a successor has been appointed and Louise Smalley, Non-Executive Director, will serve as Senior Independent Director during this interim period. The transition has been well-managed and smooth, and the Board continues to operate with stability, independence and constructive challenge.

Responsibility

Responsibility and sustainability remain embedded within our governance framework. The Board oversees progress against our commitments via our Environmental, Social and Governance (ESG) Board sub-committee. This includes carbon reduction targets, packaging changes which reduce the impact on the environment and readiness for regulatory developments. During the year, the Group enhanced transparency and continued to make measurable progress. We remain clear that responsible and well-governed businesses are better positioned to deliver durable, long-term value.

People, culture and values

People and culture are fundamental to our long-term success. The Board regularly meets colleagues through a range of forums and discusses engagement, diversity and talent development.  It is encouraging to see continued improvement in engagement scores and progress in diversity metrics, including female representation in leadership roles. This cultural evolution supports effective strategy execution and underpins future performance.

Capital allocation and dividend

Disciplined capital allocation is central to our business strategy and responsibilities to shareholders. We rigorously review investment across brand development, supply chain optimisation and system infrastructure, ensuring that capital is deployed in line with strategic priorities and expected returns.  The Board also oversaw M&A activity completed during the year, assessing strategic fit and integration planning while maintaining financial flexibility. We are delighted to welcome Innate-Essence, Frobishers and Fentimans into the AG Barr family.

Reflecting the Group's performance and strong balance sheet, the Board is recommending a final dividend of 15.27p per share, bringing the total dividend* for the year to 18.71p, an increase of 11.0% on the prior year (FY24/25: 16.86p).  This is consistent with our dividend policy and confidence in the Group's long-term prospects.

Looking ahead

AG Barr enters the new financial year with momentum. Considerable work has been completed over the past year to lay strong foundations for future growth. The Board expects the coming year to demonstrate further strategic progress, with clear milestones across innovation, channel expansion, and execution of our growth strategy through integration of recent acquisitions. We are investing for the future through our manufacturing sites to improve both volume capacity and format capability. We are also focused on investing in talent at all levels of the organisation. The Board is confident in the Group's ability to deliver growth ahead of the market whilst maintaining financial discipline and continuing to generate sustainable returns for shareholders.

On behalf of the Board, I would like to thank our colleagues for their contribution over the past year, and to thank our customers, suppliers and shareholders for their continued support.  We are proud of the progress made and are confident in the future of AG Barr.

Susan Barratt

INTERIM CHAIR

Chief Executive Officer's Review

FY25/26 was a year of strong financial delivery and strategic progress for AG Barr. Across our three key financial metrics - revenue growth, operating margin and return on capital employed - we delivered our plan and met the targets we had set out. These are the headline results but what I am most pleased about is the progress we have made towards our new, key strategic drivers which offer considerable growth opportunities ahead.

This year's main focus was strengthening the foundations of the business to support sustainable above market growth and growing shareholder returns. We stepped up our investment in brand development, commercial capability and our operations to ensure we can consistently sustain higher levels of performance. These actions, supplemented by a more meaningful M&A strategy, support our ambition to consistently deliver our targets of: a minimum 4% revenue growth per annum; 14-16% operating margin; and ROCE in the range of 19-21% with movements within this target range influenced by M&A and investment strategy as we invest to support growth.

Our strategy set out at the Capital Markets Day in June 2025 is ambitious but grounded in long-standing capabilities. We are building on proven strengths, not reinventing our business model.

Operating context

The UK soft drinks market, in which the majority of our business is based, remains large, resilient and in growth. Growth in the market during 2025 was value driven reflecting inflation and pricing.

Within this environment, we acted decisively to protect long-term value. After a prolonged period where IRN-BRU and Rubicon were positioned below the optimal price level on certain key pack formats, we implemented corrective action. These changes, made in early 2025, temporarily impacted volumes but were necessary to restore margin discipline and protect brand equity.

Consumer behaviour continues to evolve, with a number of clear shifts impacting market trends. At the same time, tightening regulation on both sugar content and advertising are shaping the retail landscape. We have and will continue to respond to developments in these areas.

Looking ahead, we see substantial growth opportunities for our business. In particular, functional healthy hydration and premium socialising are expected to drive incremental growth, underpinned by health and wellness trends and the moderation in alcohol consumption. These structural drivers align directly with our innovation focus and recent portfolio expansion through M&A.

Financial performance and value delivery

Financial results in FY25/26¹ were strong. Group revenue increased by 4.0% to £437.3m, with adjusted profit before tax* of £65.8m, up 12.5% on the prior year. Adjusted operating margin* increased by 120 bps to 14.8%, led by efficiency and strong cost discipline, moving us to within our target range. Adjusted Return on Capital Employed* of 20.4% was well within our target range despite significant up-front investment across brand and capex to support future growth.

Adjusted earnings per share* increased by 11.2%, primarily reflecting the growth in adjusted PBT. Net cash from operating activities of £51.0m highlights the strength of our cash generation and supports both our investment programme and dividend growth.

Our results further evidence our long track record of financial discipline and profitable growth, which we are confident will continue as we move forward.

Brand and portfolio performance

Our brand portfolio strategy remains a key strength and we broadened our portfolio during the year through two significant acquisitions, as well as one at the start of FY26/27. Our biggest brand, IRN-BRU, now represents 32% of Group revenue compared to 43% five years ago, reflecting successful diversification and expansion.

Our core soft drinks brands, IRN-BRU, Rubicon and Boost remain key to our growth strategy. Following pricing realignment in H1, and brand development work in H2, IRN-BRU and Rubicon are both well positioned for FY26/27. Both brands remain underpenetrated in the UK market and we see significant opportunity to raise brand awareness as well as expanding distribution and availability. We are focused on building truly UK-wide brands across the Group.

Boost delivered strong growth in the year, with revenue up 12% versus the prior year. This performance benefitted from brand development work undertaken in FY24/25, which laid the foundations for distribution gains and improved sales and marketing execution in FY25/26.

Innovation activity has significantly accelerated under our new strategy. We have recognised increasing consumer demand for new and exciting products and have therefore expanded the innovation pipeline to be the largest in the Group's history, with a number of major launches taking place from January 2026 into FY26/27. Contributions from these are expected to build as the year ahead progresses. Innovation, alongside refreshed marketing strategies and extending distribution, is central to raising brand awareness and driving penetration and growth across all brands over the medium-term.

The acquisitions of Innate-Essence, Frobishers and Fentimans over recent months see us enhancing our presence within the attractive functional beverages and premium socialising segments and demonstrates more meaningful M&A for the Group. These acquisitions broaden our addressable market and enhance exposure to higher-growth categories. Importantly, there is minimal cannibalisation of the existing portfolio from these acquisitions. With respect to Fentimans and Frobishers, integration plans are underway and associated efficiencies are expected to be generated from H2 FY26/27 onwards. Our focus for the year ahead is on embedding the recent acquisitions into the Group but we will remain alert to any compelling M&A opportunities that align with our stated strategy and growth objectives.

Channel performance in the year reflected both opportunity and challenge. We made good progress with the early stages of our expansion within the grocery channel, with more progress expected in FY26/27. At the same time, necessary pricing actions on certain pack formats in H1 FY25/26 created short-term volume softness in some areas of our Wholesale / Convenience business, which has now normalised. During the year we strengthened our revenue growth management capability and this is enabling greater precision in navigating these dynamics going forward.

Strategy in Action

Our strategy is designed to deliver consistently growing shareholder returns: combining growth with the right M&A opportunities in order to deliver EPS and dividend growth aligned with our long-term profit performance. Our strategic priorities are focused around five growth platforms: More from Core; Excellence in Sales & Market Execution; Supply Chain Leverage; Innovation Upweight; and Strategic M&A.

During the year, we undertook considerable foundational work across these five pillars. We increased brand investment and refreshed marketing strategies across our biggest brands, and we strengthened our sales team and its capabilities. We advanced channel expansion initiatives to improve penetration and geographic coverage, and executed against our M&A strategy by making three acquisitions which are expected to deliver meaningful accretion over the medium-term following their integrations and / or scaling.

Operationally, our comprehensive investment programme continued, including phased capability and capacity expansion to support long-term growth. We continued to improve our supply chain, leveraging our integrated model to enhance efficiency, customer service and product quality. The final phase of our Cumbernauld site manufacturing line refresh programme saw the installation of a new, high-speed can line in January 2026. We also progressed the early stages of expanding our Milton Keynes manufacturing capability, with the next key milestone being the implementation of a second independent can-line which will be operational from early 2027. These projects require significant up front investment before returns are generated in subsequent years.

I am pleased with the progress we have made in the starting year of our new strategic objectives. There are plentiful, significant opportunities ahead and much more to do to realise our ambitions for the business.

People, culture and capability

The evolution of our culture and capability has been fundamental to our performance. We introduced new appointments and expanded expertise during the year, embedding upweighted talent across the business and particularly in our sales and marketing teams.

Employee engagement improved to 81% (FY24/25: 78%), reflecting increased clarity of purpose and confidence in our strategy. We also made progress on diversity metrics, including 43% female representation in leadership roles (FY24/25: 38%). A stronger performance culture, combined with enhanced capability, underpins our confidence in delivering our strategy with low execution risk.

Sustainability and responsibility

We advanced our ESG strategy during the year, increasing both delivery and transparency. We achieved a 10.5% reduction in Scope 1 and 2 emissions year-on-year, progressed packaging initiatives and continued our preparatory work in readiness for regulatory developments, including the introduction of the Deposit Return Scheme in the UK, legislated to take place in late 2027.

Responsible and efficient operations are fully aligned with our strategic objective of delivering sustainable shareholder returns.

Capital discipline and balance sheet

Capital allocation remains disciplined and aligned to our strategy. Capital expenditure of £30.4m focused on supply chain optimisation and systems modernisation. The increase in our dividend demonstrates ongoing business growth and our commitment to shareholder returns.

Our balance sheet remains strong, providing flexibility to invest and pursue targeted M&A, including the post period end acquisition of Fentimans. Our approach remains consistent: invest in brands, capability and infrastructure that enhance long-term returns while maintaining financial resilience.

Outlook and priorities for FY26/27

Building on the progress made in FY25/26, we enter FY26/27 with good momentum. Further milestones are planned for the coming year, including successful rebranding of IRN-BRU and Rubicon, multiple new launches and progress with channel expansion initiatives.

Our priorities for FY26/27 are clear: deliver our targeted revenue growth; penetrate deeper through channel expansion activities; successfully execute our upweighted innovation pipeline; make further efficiency gains in our Supply Chain; and integrate and grow recent acquisitions.   

We are ambitious. Our strategy aims to deliver above market growth rates and double the business. Importantly, we are pursuing this ambition without changing our core business model and with a disciplined focus on margin, ROCE and shareholder returns.

AG Barr combines a broad and broadening portfolio of market-leading UK brands, a strong balance sheet, a proven track record of financial discipline and strong cash generation and a newly introduced strategic ambition that builds on our long-term expertise. We are excited by our strategy and confident in our ability to deliver sustainable profitable growth and increasing returns for shareholders.

Euan Sutherland

CHIEF EXECUTIVE OFFICER

Financial Review

Highlights

FY25/26¹ has been a period characterised by strategic transition, disciplined commercial execution and financial growth. We have recorded another year of high-quality financial performance delivering revenue growth and margin progression while investing in and strengthening our brand portfolio and continuing our successful multi-year operational expansion programme.

We have delivered across our three key financial metrics:

●     Revenue grew by 4.0% to £437.3m (FY24/25:  £420.4m). This growth was value-led and in line with our commitment of a minimum of 4% growth.  Disciplined pricing action in early 2025 had a negative short term impact on volumes as we successfully repositioned core brand formats in advance of brand redesign and upweighted marketing initiatives planned for 2026.

●     Adjusted operating margin* increased 120 bps to 14.8%, moving within our target range of 14 - 16%, on the back of successful operational and capital improvement initiatives.  This enabled adjusted profit before tax* to improve 12.5% to £65.8m.

●     Adjusted Return on Capital Employed* (ROCE) of 20.4% was maintained at target level of 19-21% despite significant up-front investment across brand and capex to support future growth.

This strong performance reflects our strategy to build brands, drive commercial execution and leverage manufacturing operational efficiency. This value focused framework resulted in adjusted EPS* up 11.2% and supports an increase in the proposed final dividend to 15.27p/share, up 11.0% on the prior period final dividend.

During the year we successfully completed two acquisitions:  Innate-Essence in Q2 and Frobishers in Q4. On 2 February 2026, after the financial year end, we announced the acquisition of Fentimans. All three transactions are aligned with our strategy to grow both our existing brands and through M&A in higher growth segments. 

Revenue, profit and margin analysis

Our revenue growth follows our 'value over volume' philosophy.  In FY25/26 we successfully executed targeted pricing across our core portfolio to protect brand equity and implement improved revenue growth management (RGM) principles.

●     Pricing: Total revenue growth of 4.0% was driven by price. Our RGM initiatives secured price increases ranging from 1-11%, based on a framework of price elasticity, competitor price points and consumer occasions. This enabled us to align pricing, promotional plans and customer investment at a brand, product format and customer level consistent with long term brand positioning.

●     Volume Performance: Overall volume was relatively flat versus the prior year in a year of price repositioning. As expected, the pricing actions led to some volume pressure for those brands and formats with the most significant price increases, with strong volume growth on brands where price increases were smaller. Volume contributed by the Innate-Essence acquisition broadly offset the volume loss associated with the Strathmore disposal.

●     Cost & Mix: A key theme of this year's performance has been continued margin improvement. Our adjusted operating margin* expanded by 120 basis points to 14.8%. This was achieved through:

○    Operational Efficiencies: Our multi-year capital and operational improvement programme continues to generate benefits across service, quality and costs. Our investment in people, capacity and capabilities has realised production efficiencies across the supply chain in FY25/26 and these will continue in FY26/27.

○    Disciplined Cost Management: At an aggregate level, input costs moderated this year, however significant volatility remains within specific categories. Headwinds in key commodities (aluminium and soft fruits are both at record highs) combined with increased regulatory costs were partially offset by multi-year lows in sugar and a recovery in mango harvests. Labour and service cost inflation persists but at lower levels than experienced in the recent past. Improved procurement capabilities and our long standing commitment to a cost conscious culture secured savings and ensured total costs were constrained at levels in line with prior year. The current Middle East conflict is a fast-moving situation, the intensity or duration of which we are unable to predict. However, at the time of writing, the direct impact on our business is confined to the current energy cost spikes. We have no revenue exposure or direct supply chain exposure to the Middle East and good hedge cover on all key commodities through most of 2026.

○    Overall mix was marginally negative as a result of the significant growth of the relatively lower margin Boost brand alongside continued challenges in the higher margin FUNKIN on-trade sector.

Segmental Performance

Our segmental performance demonstrates the resilience of our "Total Beverage" strategy and highlights our strategic evolution towards a wider, more balanced portfolio of soft drinks, functional health, and premium socialising:

●     Soft Drinks: As the portfolio's cornerstone, Soft Drinks yielded steady revenue increases. IRN-BRU (32% of Group revenue) revenue grew with performance strengthening as the year progressed. Following three years of double-digit expansion, Rubicon moderated to low single-digit revenue gains as price adjustments and specific channel challenges impacted off-take. Both flagship brands exited the period with renewed momentum that continues in the new financial year. Boost emerged as the standout performer in FY25/26, achieving significant double-digit gains in both energy and sports formats following the FY24/25 brand redesign. Barr Brands encountered volume pressure as consumer preferences shifted from large PET formats, where Barr over-indexes, toward cans. As part of our continued review of the portfolio, we exited the low-margin water segment through the disposal of Strathmore in June.

●       Cocktail Solutions: Revenue growth in RTD cans continues to be negated by the persistent headwinds in the on-trade with the consumption of spirits, in particular cocktails, affected. Overall FUNKIN revenue declined 11%. We are not anticipating on-trade recovery in the near term and are re-focusing on self-help initiatives that will reposition the brand for both consumers and customers. 

●     Other: The "Other" category, comprising MOMA and Innate-Essence brands, was the fastest-growing component of the portfolio reflecting their position in higher growth categories. Both MOMA and Innate-Essence achieved double-digit revenue increases from significant distribution wins and increasing rate of sale. The growth highlights the successful scaling of these newer brands as they transition to being profitable contributors, and demonstrates our expertise in building great brands.

Adjusting Items

To provide a clearer view of our underlying business performance, we report results on both a reported and an adjusted basis. The Group presents these measures to the users to enhance their understanding of how the business has performed within the year, and does not consider them to be more important than, or superior to, their equivalent IFRS measures. The adjusted basis excludes specific items, material by their size or incidence, that do not reflect the Group's underlying business performance.  In the period to January 2026, the Group incurred and separately disclosed a net charge of £3.2m of pre-tax adjusting items (FY24/25:  £5.3m charge).  This charge has been included within operating expenses but has been excluded from adjusted profit before tax.  Adjusting items comprise:

Costs associated with the integration of Fentimans are expected to be treated as an adjusting item in FY26/27. The quantum of these is not yet known. 

Capital Allocation & Investment Discipline

Capital allocation, a key component of our business strategy, is designed to drive long-term shareholder value while maintaining the financial flexibility required to execute our strategic ambitions. We operate a disciplined hierarchy of capital usage, underpinned by a commitment to maintain a robust but efficient balance sheet within a framework that will deliver:

●     ROCE in the range of 19-21%, with the position within the range influenced by the timing of both M&A and other investments necessary to deliver our long-term growth ambition;

●     Long term Net Debt / EBITDA ratio of no more than 2.5x;

●     M&A that delivers growth and accretive value immediately or through subsequent integration and scaling;

●     Dividend growth aligned with profit performance, with a dividend cover of at least 2x EPS.

Our capital allocation prioritisation is based on:

●       Organic Investment: We prioritise re-investing in our core business to sustain commercial growth and fuel expansion. We review investment across brand development, supply chain optimisation and systems infrastructure, ensuring that capital is deployed in line with strategic priorities and expected returns. In FY25/26 investment was directed toward brand building and manufacturing capacity/capability. Our multi-year capital refresh programme in Cumbernauld is now nearing completion with the third and final new manufacturing line successfully entering commission in January 2026 on time and within budget. We anticipate that overall cash capital expenditure will peak in FY26/27 at c.£40m before returning to £30m-£35m in FY27/28, and continuing in that range thereafter as we continue to invest to support our growth ambitions. Net cash from operating activities is expected to more than support the capital expenditure profile.

●       Disciplined M&A: We seek acquisitions that provide greater access to high-growth segments or geographic expansion, and that will be value accretive to the business through integration and scaling. M&A evaluation is based on a range of criteria including strategic fit alongside medium-term ROCE and margin impact. During the year we invested in higher growth segments of functional health (Innate-Essence) and premium socialising (Frobishers and, post year end, Fentimans) while exiting the low margin and ROCE dilutive Strathmore water brand. The Board currently monitors Net Debt/EBITDA to ensure we retain the capacity for mid-to-large scale M&A should the right opportunity emerge. 

●       Growing Dividends: Reflecting our cash-generative business model and financial discipline, we are committed to sustainable dividend appreciation, and a dividend that grows in line with profit performance. We target a dividend cover of at least 2x, ensuring a reliable shareholder return while retaining sufficient capital to fund our strategic growth ambitions. This year we are proposing a final dividend of 15.27p, a 11.0% increase on the prior year (FY24/25: 13.76p) taking the full year dividend* to 18.71p. Our interim dividend policy is set at 25% of the prior year final dividend - providing clarity and certainty for shareholders.

Acquisitions & Integration

The Group completed two strategic transactions (Innate-Essence and Frobishers) during the reporting period, and one transaction (Fentimans) in February shortly after the year-end close. These are accounted for as follows:

1.  Innate-Essence: In July 2025 we invested an initial consideration of £14.7m, and an estimated contingent consideration of £2.0m, for a 50.1% share in Innate-Essence, the company which owns the 'Turmeric Co' & 'Raw Hydrate' brands. The transaction aligns with our strategy and establishes our presence in the high-growth functional health segment. Since acquisition Innate-Essence has delivered double-digit revenue growth and contributed £6m to Group revenue. Whilst currently loss making, we anticipate that the investment will become a positive contributor to operating margin and ROCE by year three. The transaction structure preserves the entrepreneurial culture of the founders, who remain in management and hold 49.9%, aligns founders incentives with our long-term scaling objectives and gives AG Barr control of the strategic direction.

2.  Frobishers: Towards the end of the financial period we acquired 100% of the premium fruit juice brand for £12.9m. The acquisition supports our expansion into the higher growth premium socialising sector where soft drinks are currently benefiting from consumers seeking alcohol alternatives. We intend to integrate the brand into our core business to leverage both our route to market access and brand building capabilities. Integration will be across all support functions, with associated efficiencies beginning to come through in H2 FY26/27. The business is expected to become accretive to the Group on an operating margin basis from FY27/28. Based on historical performance, the acquisition was made at c.1x sales and c.12x profit multiple with the intention to scale and realise synergies over the coming 18 months as we integrate and grow the brand. 

3.  Fentimans: Acquired for £38.4m, plus a £2.1m repayment of director's loans, in an all cash transaction that completed after the financial year end and is being treated as a post balance sheet event. The transaction brings the world-renowned "Botanical Brewing" brand into the Group as a key driver of our expansion into the higher growth, premium socialising segment. The last statutory filings for Fentimans (December 2024) recorded a profit of £1.4m on sales of c.£40m and as such it is currently margin dilutive to the group performance. We anticipate that the brand will be integrated into our core business and we are currently evaluating and finalising our plans.  It is likely that integration will take place during FY26/27 with associated efficiencies from H2. Potential manufacturing synergies are unlikely until FY28/29.

The accounting treatment within these accounts reflects our different levels of ownership and the timing of the transactions:

As detailed above, both Frobishers and Fentimans will be dilutive to Group operating margin and ROCE while they undergo integration and scaling plans. This is anticipated to result in Group ROCE being towards the lower end of the target 19-21% range for FY26/27 and FY27/28 before rising again, and is in line with the Group's strategy of supporting growth alongside ongoing financial discipline to achieve targeted Group levels.

There are no plans to integrate Innate-Essence. It will continue to operate with a dedicated management team.

Balance Sheet & Cash Flow

The Group remains financially strong with significant net cash from operating activities. We have maintained good financial discipline throughout the year with no material trade debt issues, appropriate inventory levels, a defined benefit pension surplus and a £28m increase in the net asset base to £346m. Together with strong growth in adjusted operating profit*, this sustained adjusted Return on Capital Employed* of 20.4%.

●          Net cash from operating activities: Cash generation remains a core strength. We generated net cash from operating activities of £51.0m, supported by disciplined working capital management and enabling execution of both our asset capacity/capability programme and our M&A strategy.

●          Working capital: Overall working capital impact on cash flow was an outflow of £8m; however, this was primarily as a result of the timing of supplier payments ahead of the year end date coinciding with 31 January (year end date in the prior year was 25 January). Excluding acquired balance sheets, underlying receivables were up marginally driven by revenue growth and inventory levels were slightly lower reflecting good inventory management and the prior year having an inventory build related to the Cumbernauld manufacturing line refresh programme.

●          Liquidity/ Net cash: We ended the year with £41.6m Net Cash at Bank*, £22.3m lower than the previous year due to our M&A activity. We maintain significant financial resilience and have debt capacity should further compelling opportunities arise. Shortly before the end of the financial year, we secured a £40m short term debt facility, which was fully drawn down at year end to support funding of the Fentimans acquisition before £20m was repaid in mid-February 2026. The Group is currently working to secure a new facility to follow the expiry (May 2026). We have received strong indications of continued support from our banking partners and are currently in advanced discussions with them to secure a new, longer-term facility. Based on this positive engagement, alongside our robust operational cash flows and strong balance sheet, the Board has a high degree of confidence that the new facility will be finalised well ahead of the current maturity date. Should there be any delay in securing the new facility, we have other options to ensure good short-term liquidity.   

●          Capital Expenditure: We recognise the value of a well-invested asset base and the benefits this can bring to production efficiency and to enabling in-sourcing production. Cash capital expenditure* of £30.4m (FY24/25: £19.2m) was focused on our multi-year asset refresh programme at our Cumbernauld site. This programme is in its final stage with two refreshed manufacturing lines in operation and our new high speed can line currently in commissioning. The programme will complete in H1 FY26/27 on time and to budget. In FY26/27 our capex programme will transition to the expansion of capacity and capabilities in both Milton Keynes and Cumbernauld to enable the completion of our Boost in-sourcing initiative. In addition we will be commencing our sustainability focused installation of heat pumps across the production footprint. We expect cash capex to peak in FY26/27 at c.£40m before returning to a more normalised c.£30-35m over the medium term.

●        Debt Capacity: The Board retains an intention to operate an efficient balance sheet, allowing for the option of using a prudent level of debt to capitalise on business growth opportunities when appropriate. We are comfortable that the cashflows and earnings profile of the Group could support a debt capacity up to 2.5x EBITDA.

●        Tax: Our effective tax rate was 25.4%, slightly higher than the statutory rate due to the non-deductibility of certain costs.

 Technical & Governance

●       Accounting Policies: The Group's financial statements have been prepared in accordance with UK adopted International Accounting Standards and the UK Listing Rules of the Financial Conduct Authority. There have been no changes to the accounting policies applied this year. All new or amended standards that are applicable have been adopted with no material impact on the results for the current and prior reporting periods.

●       Financial Risk Management: The treasury and commodity risks faced by the Group are identified and managed by the Group Treasury and Commodity Committee whose activities are carried out in accordance with Board approved policies and subject to continued Audit and Risk Committee oversight. Key financial risks managed by this committee include exposures to foreign exchange rates and the management of the Group's commodity, debt and liquidity positions. The Group uses financial instruments to hedge against foreign currency exposures.  No transactions are entered into for speculative purposes. The Group seeks to mitigate risks in relation to supply continuity of key raw materials and ingredients by developing strong commercial relationships with our key suppliers. The monthly Financial Governance Committee maintains oversight on all aspects of financial governance and compliance. It reports to the Executive Committee and regularly updates the Audit and Risk Committee.

●     Pensions: The AG Barr Pension Scheme (closed to new entrants) remains in a surplus of £0.5m (IAS 19). We continue to progress our long standing pension de-risking programme. During the financial period the pension fund completed a third buy-in policy with Canada Life. In addition, as the pension fund is now fully funded, the asset backed funding programme (CAR) that has been in place since 2013 has now been wound up. The accounting treatment associated with the elimination of the CAR has no impact on the group income statement or balance sheet.

●     Treasury: We maintain a conservative treasury policy focused on capital preservation and liquidity. The Group remained net cash positive throughout FY25/26, with surplus cash held on rolling short-term deposits. The resulting bank interest income of £1.5m was partly offset by finance charges related to short-term overdraft usage and lease interest costs under IFRS 16.

Outlook

We have delivered a robust set of results that reflect the strength of our brands and the success of our margin rebuild program. We exit FY25/26 with strong momentum having made good progress across all our strategic growth drivers described in the Chief Executive Officer Statement.

We enter FY26/27 with a broader portfolio of leading UK brands, a strong innovation pipeline and a clear strategy to deliver consistent profitable growth while maintaining our reputation for strong financial discipline. Having successfully rebuilt our profitability metrics, we aim to keep those metrics within our targeted ranges, while continuing to invest in growth through capital projects and acquisitions which we recognise can impact efficiency / profitability metrics in the short-term. Our medium term key financial targets are unchanged - delivering top line growth of a minimum 4% while maintaining operating margin within the 14-16% range, and ROCE within the 19-21% range.

Our focus for the coming year is to continue to deliver core brand growth through the strong execution of proven brand building strategies, capture the full synergy opportunities from recent acquisitions and continue to drive operational efficiencies across our supply chain base, all conducted within a robust framework of strong financial control.

Stuart Lorimer

CHIEF FINANCE AND OPERATING OFFICER

1. General Information

A.G. BARR p.l.c. (the "Company") and its subsidiaries (together the "Group") manufacture, distribute and sell a range of beverages. The Group has manufacturing sites in the UK and sells mainly to customers in the UK with some international sales.

The Company is a public limited company, which is listed on the London Stock Exchange and incorporated and domiciled in Scotland. The address of its registered office is Westfield House, 4 Mollins Road, Cumbernauld, G68 9HD.

The financial year represents the 53 weeks ended 31 January 2026 (prior financial year 52 weeks ended 25 January 2025).

Basis of preparation

The financial information for the year ended 31 January 2026 contained in this news release was approved by the Board on 31 March 2026. This announcement does not constitute statutory financial statements within the meaning of Section 435 of the Companies Act 2006, but is derived from those financial statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK and in conformity with the requirements of the Companies Act 2006.

This information has been prepared under the historical cost method except where other measurement bases are required to be applied under IFRS, using all standards or interpretations required for the financial period beginning 26 January 2025. No standards or interpretations have been adopted before the required implementation date. Whilst the financial information included within this announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, it does not comply with all disclosure requirements.

Statutory financial statements for the year ended 25 January 2025 have been delivered to the Registrar of Companies.  Statutory financial statements for the year ended 31 January 2026, which have been prepared on the going concern basis, will be delivered to the Registrar of Companies following the Group's Annual General Meeting.

Going concern

The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks. 

The most significant potential financial impact would be due to a significant reduction in sales. The revenue and operational leverage impact of such a revenue loss would have a negative impact on Group profitability, however the scenario modelling would indicate that the Group would maintain sufficient liquidity headroom without fully utilising the existing facilities or breaching the financial covenants of the revolving credit facility over the next 12 months. We would anticipate a recovery in the following years as our experience through the Covid-19 pandemic has reinforced our confidence that the Group can remain profitable and cash-generative through prolonged disruption and fully recover after such events.

The Group currently has two credit facilities in place. A revolving credit facility of £40m, with a term date ending on 8 May 2026; and an open-ended overdraft of £15m. The revolving credit facility was fully drawn at 31 January 2026 in order to fund the acquisition of Fentimans Ltd post year end on 2 February 2026 for total consideration of £40.5m, before £20m was repaid in mid-February 2026. The Group is currently working to secure a new revolving credit facility to replace the current one, which expires in May 2026. We have received strong indications of continued support from our banking partners and are currently in advanced discussions to secure the new, longer-term facility. The Board has a high degree of confidence that the new facility will be finalised well ahead of the current facility's maturity date. Should there be any delay in securing the new facility, we have other options to ensure good short-term liquidity.

The directors believe that the Group is well placed to manage its financing and other business risks satisfactorily, and have a reasonable expectation that the Group and parent Company will have adequate resources to continue in operation for at least 12 months from the signing date of these consolidated financial statements. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

The auditors have reported on those financial statements. The reports were not qualified, did not contain a reference to any matters which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

Changes in accounting policy and disclosures

(a) New and amended standards adopted by the Group

A number of new or amended standards became applicable for the current reporting period and the Group had to change its accounting policies as a result of adopting the following standard:

•     Lack of exchangeability - Amendments to IAS 21

The amendments listed above do not have a material impact on the results for the current and prior reporting periods.

(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 26 January 2025 and not adopted early

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 January 2026 reporting periods and have not been adopted early by the Group. These standards, amendments or interpretations are not expected to have a material impact on the Group in the current or future reporting periods or on foreseeable future transactions.

The assessment of the impact of IFRS 18 - Presentation and disclosure of financial statements, which will become effective in the year ending 29 January 2028, is still in progress and will change the presentation of the consolidated financial statements.

2. Segment reporting

The Board and senior executives have been identified as the Group's chief operating decision-makers (CODM), who review the Group's internal reporting in order to assess performance and allocate resources.

The reportable segments have been aggregated by nature of the product as well as having similar production and distribution processes, consistent with the internal reporting structure used by the CODM.

The Group reports on the following segments:

 1. Soft Drinks - includes carbonated and non-carbonated beverages from brands such as IRN-BRU, Boost, Barr, Rubicon, Rio and Frobishers.

 2. Cocktail Solutions - includes beverages from the FUNKIN brand for premium socialising.

 3. Other - includes oat-based products from the MOMA brand and functional beverages from Innate-Essence business.

Segment performance is evaluated based on revenue and gross profit and is measured consistently with gross profit in the consolidated financial statements.

As the Group's operating costs are charged centrally, the performance of the segments is assessed by reference to their revenue and gross profit as reported to CODM.

There are no material intersegment sales. All revenue is in relation to product sales, which is recognised at a point in time, upon delivery to the customer.

All of the assets and liabilities of the Group are managed on a central basis rather than at a segment level. As a result, no reconciliation of segment assets and liabilities to the statement of financial position has been disclosed for either of the periods presented.

Included across all segments are revenues arising of approximately £78.2m, which arose from sales to the Group's largest customer (2025: £75.7m). No other single customers contributed 10% or more to the Group's revenue in either 2025 or 2026.

Geographical information

The Group operates predominantly in the UK with some worldwide sales. All of the operations of the Group are based in the UK.

The rest of the world revenue includes sales to the Republic of Ireland and international wholesale export houses.

All of the assets of the Group are located in the UK.

In addition to the above movements in deferred tax, a deferred tax debit of £2.0m (2025: debit of £1.5m) has been recognised in other comprehensive income and a debit of £0.1m (2025: debit of £0.1m) has been taken direct to reserves.

The tax on the Group's profit before tax differs from the amount that would arise using the tax rate applicable to the consolidated profits of the Group as follows:

The weighted average tax rate was 25.4% (2025: 25.4%). The standard rate of corporation tax applied to reported profit is 25% (2025: 25%).

4. Dividends

Dividends paid in the financial year were as follows:

The directors have proposed a final dividend in respect of the year ended 31 January 2026 of 15.27p per share. It will be paid on 5 June 2026 to all shareholders who are on the Register of Members on 8 May 2026.

Dividends payable in respect of the financial year were as follows:

CAUTIONARY STATEMENT

This report is addressed to the shareholders of A.G. BARR p.l.c. and has been prepared solely to provide information to them.

This report is intended to inform the shareholders of the Group's performance for the year ended 31 January 2026. This report contains forward-looking statements based on knowledge and information available to the directors as at the date the report was prepared. These statements should be treated with caution due to the inherent uncertainties underlying any forward-looking information and any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

Glossary

Non-GAAP measures are provided because they are tracked by management to assess the Group's operating performance and to inform financial, strategic and operating decisions.

Definition of non-GAAP measures used are provided below:

Adjusted basic earnings per share is calculated by dividing adjusted profit attributable to equity holders by the weighted average number of shares in issue.

Adjusted operating margin is calculated by dividing adjusted operating profit by revenue.

Adjusted operating profit is calculated as operating profit after adjusting items.

Adjusted profit before tax is calculated as reported profit before tax after adjusting entries as disclosed in the adjusting entries accounting policy.

Adjusted return on capital employed (Adjusted ROCE) is defined as adjusted profit before tax divided by invested capital.

Cash capital expenditure is defined as the cash outflow on purchases of property, plant and equipment, and is disclosed in the cash flow statement.

Full year dividend is defined as the total dividends declared for the financial year.

Net cash at bank is defined as the net of cash plus short-term investments less loans and other borrowings as shown in the statement of financial position.

Operating margin is calculated by dividing operating profit by revenue.

Return on capital employed (ROCE) is defined as reported profit before tax as a percentage of invested capital.  Invested capital is a non-GAAP measure defined as the average of the opening and closing non-current assets plus current assets less current liabilities excluding all balances relating to any provisions, financial instruments, interest-bearing liabilities and cash or cash equivalents.

Reconciliation of non-GAAP measures

Adjusted Consolidated Income Statements

Adjusting entries:

Business reorganisation & integration - the costs associated with the integration of FUNKIN and restructuring of the Commercial function and one-off accrual of costs relating to the integration of the Frobishers business that will commence in H1 and will be completed by H2 FY26/27.

Acquisition related - professional and transaction fees in relation to the acquisition work undertaken in the financial year for Innate-Essence, Frobishers and Fentimans.

Asset impairment - impairment of vehicles that were part of Barr Direct operations.

Business change projects - the costs associated with the business change projects involving the closure of Barr Direct operations and the integration of the Boost business.