AG Barr has reported an 15.9% rise in revenue, on a like-for-like basis.
The Cumbernauld-based drinks group's final results for the year ended 29 January 2023 also revealed adjusted profit before tax of £43.5m; 13.3% ahead of the prior year.
A 13.6% adjusted operating margin reflects supply chain cost inflation, plus the expected short-term impact of lower margin MOMA and Boost, alongside accelerated investment, including significant marking for the Funkin and MOMA brands.
Strong cash generation and a 'robust' balance sheet leave AG Barr with a net cash position of £52.9m, post significant capital expenditure due to recent acquisitions.
The board confirmed a full-year dividend of 13.1 pence per share, including final recommended dividend of 10.6 pence per share.
Chief executive Roger White commented: “Over the past 12 months we delivered an excellent financial performance and made significant progress across our strategic objectives, an achievement only made possible by our committed and hardworking teams.
“Our strategy to build and develop a multi-beverage portfolio capable of significant long-term growth is progressing well.
“We are now in an investment phase, designed to capitalise on the strategic growth opportunities ahead,“ he continued, adding: “We do anticipate a short-term impact on operating margins, as a result of the combination of this investment, ongoing inflationary cost pressures, and the initial dilutive impact from the Boost acquisition.
“This growth and investment phase will support the rebuilding of our operating margin over the medium term and the creation of a stronger and more sustainable business.”
After 62 years with the business - including 58 years on the board - Robin Barr has made the decision not to seek re-election at the Annual General Meeting in May.
It was also announced that Julie Barr will relinquish her company secretarial duties and, subject to shareholder, approval will join the board as a non-executive director. She has been with the company for 19 years - and is a qualified corporate lawyer - now standing for election at the AGM.
Chairman Mark Allen commented: “We are hugely indebted to Robin for all his years of service, not to mention the balanced and insightful guidance he has provided to the board as the business has developed across the last 60 years or so.
“I am delighted that Julie will join the board in due course and I am certain her experience and skills will complement and further strengthen our capabilities.”
John Moore, senior investment manager at RBC Brewin Dolphin, commented: “Despite a tough backdrop, trading remains strong and the company’s positive momentum continues, with recent acquisitions making a positive contribution to the bottom line.
“Cost pressures remain a concern and have heightened a little since AG Barr last updated the market, but the company is demonstrating its ability to successfully mitigate this issue.
“Despite making some significant investments, AG Barr still has a substantial amount of cash on its balance sheet, which should not only help support the dividend - up 9.2% on a year ago - but could be used for further investment and bolt-on acquisitions to consolidate the company’s growing market position.”
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