• H1 net profits up 27% to GBP12.8m (US$20.9m)
  • Net sales increase 5% to GBP135.7m
  • Operating profits up 22% to GBP16.6m
  • Volumes up 6.2%
Barr said the DPSG deal covers the UK and "certain other EU territories"

Barr said the DPSG deal covers the UK and "certain other EU territories"

AG Barr has posted a jump in first-half profits and sales as it announced an exclusive ten-year deal with Dr Pepper Snapple Group (DPSG) to distribute the US firm's products in the UK and other EU countries.

H1 net profits climbed by 27% to GBP12.8m (US$20.9m) in the six months to 27 July, the Irn Bru owner said today. Net sales increased by 5% to GBP135.7m in the same period while operating profits were up by 22% to GBP16.6m.

Roger White, AG Barr's CEO, said the results showed “strong, balanced growth”, and included a 6.2% volumes growth that was ahead of the UK soft drinks market. 

White also hailed the DPSG deal, effective from January, which according to a statement released today will see the two companies work in “partnership to identify further expansion opportunities in European markets where Snapple is currently not available”.

White said: “Snapple is an authentic, high-quality brand that is very successful in the US and we strongly believe in the significant potential of Snapple in Europe.”

The deal covers the UK and “certain other EU territories”, Barr said without giving details. An AG Barr spokesperson was unavailable for comment on the partnership.

DPSG’s senior VP, International, Andrew Bayfield, said: “We see an opportunity to build Snapple in Europe over the long-term. AG Barr has the capabilities to help unlock the potential of the brand in those markets, and we’re looking forward to working with them.”

In first-half results, Barr said all of its core brands had grown ahead of the market, with Strathmore bottled water “in double digit growth”.

According to Nielsen figures cited by Barr, the total soft drinks market in the UK grew by 0.8% in value terms, with a volumes decline of 1.2%.

Looking ahead, the company said it plans to maintain its increased investment in its brands for the rest of the year and remains “confident in the long-term potential of the business”.

Barr's share price was up 0.7% on the London Stock Exchange as of 0952 today.

To read the company's full statement, click here.