Taste for Irn Bru gets AG Barr off to a fizzing start

Scottish soft drinks maker AG Barr said it has made a good start to the year, thanks to strong performances by its Irn Bru and Rubicon brands.

Revenue for the period from January 31 to May 29 on a like-for-like basis increased by 17.9% compared with last year.

"We have made a good start to the year, undertaking a significant amount of brand development and trade activity in the first quarter ahead of the usually highly competitive World Cup trading period," said a company statement.

"The strong start combined with our future plans give us confidence that we will meet our expectations despite the continued uncertain economic backdrop."

John Dickinson at Brewin Dolphin said: "We are mindful of the highly competitive summer season ahead and in particular the massive Cola advertising that will accompany the World Cup."

For that reason, he rates the shares no more than a hold. They were flat today at 975p.

Overall operating margins continue to be in line with expectations, the group added.

Investec rates AG Barr's shares a buy, setting a price target for the stock of 1035p.