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AG Barr Seals Fentimans and Frobishers Deals as Profits Set to Climb

Management says the move broadens its adult soft-drinks lineup to capture consumers cutting back on alcohol.

Overview

  • AG Barr completed the roughly £38 million purchase of Fentimans and a £13 million deal for Frobishers, taking total spend to more than £50 million.
  • The group reported about £437 million in revenue for the year to January 31, up 4% with margins supported by ongoing cost efficiencies.
  • Leaders said the company remains on track for double-digit growth in underlying pre-tax profit for the year.
  • The acquired brands add scale in premium adult soft drinks, a segment the company says is benefiting from reduced alcohol consumption.
  • Executives expect cost synergies from the transactions to deliver meaningful earnings accretion over the medium term, and shares rose about 6% after the update.