DAVY VIEW

AG Barr is expected to deliver revenue growth of c.8% in H1-27 (VA consensus: c.12%), primarily supported by the contribution from recent acquisitions, with core volume growth impacted by stock availability issues in Q2. Despite this, the H1 adjusted operating profit margin is expected to be in the middle of the guidance range (range:14-16%, VA consensus: 14.8%). While the supply constraints impacting Q2 are still being resolved, market share gains, encouraging innovation performance and supply chain actions give confidence in an improved H2 revenue performance and full-year double-digit percentage growth (VA: +12%), with integration and insourcing benefits underpinning a strengthening H2 margin and delivery of full-year profit expectations. At first look, we envisage limited changes to our profit forecasts.