AG Barr has reported a 15.8% increase in adjusted profit before tax to £58.5m during the year ended 25 January 2025.

The annual results statement also revealed that it intends to discontinue the Strathmore brand later this financial year, which, subject to employee consultation, could lead to the closure of the small manufacturing site in Forfar.

A spokesperson from AG Barr clarified that this could lead to 23 roles becoming redundant.

"The Strathmore brand has struggled to compete in recent years, and we believe we have now reached a point where the Forfar site is no longer sustainable," read the statement. "The proposals are subject to consultation, and we intend to fully support our employees through this period of change."

In February, an organisational simplification was announced to staff that will see the integration of the Barr Soft Drinks and Funkin businesses into a unified operation.

The Cumbernauld-based drinks group - whose brands include Irn-Bru, Rubicon, Boost and Funkin - also posted a 5.1% increase in revenue, driven by strong growth in 6.4% growth in soft drinks.

This was led by a "standout performance" from Rubicon and continued strong growth from Scotland's other national drink, with distribution gains and new product launches also helping.

Statutory profit before tax of £53.2m was after £5.3m of one-off costs, treated as adjusting items, relating to the closure of the direct sales operation and integration of Boost.

A strategic programme to rebuild operating margin is currently ahead of plan, with adjusted operating margin up 130 basis points to 13.6%.

AG Barr also stated its position of £63.9m net cash in the bank.

The group's outlook for the year is unchanged, with another year of revenue growth and margin improvement expected.

Chief executive Euan Sutherland commented: "Looking forward, we have a refreshed strategy centred on growth and are committed to our long-term financial targets.

"I am confident that successful execution of our plans will see another year of positive progress towards our long-term goals."

The business is holding a capital markets event in London on 3 June to share further details of the refreshed strategy. The next scheduled trading update is on 29 July.

Zoe Gillespie, investment manager at RBC Brewin Dolphin, commented: “Revenues and profits are on the rise, despite a challenging economic backdrop, and many of its brands are growing ahead of the market.

“The discontinuation of the Strathmore water brand is unlikely to have a material impact on the company and, with plenty of cash in the bank and an appetite for acquisitions, it seems that another strategic move could be in the offing in the not-too-distant future.

“AG Barr has a lot of qualities as a business and continues to invest in its operations – while the drinks market is highly competitive, the company should remain in a strong position when others may struggle.”

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