IT may have nothing to do with its endorsement by former Scottish Labour leader Jim Murphy, but city analysts are wondering whether Irn-Bru has lost some of its financial fizz, writes Martin Hannan.

Interim results by AG Barr, the Cumbernauld-based FTSE 250 firm which makes Scotland’s ‘other national drink’, contained a warning that it may miss end-of-year profit growth targets, and its shares subsequently closed down more than five per cent on the day.

Barr, which also makes brands such as Rubicon and Strathmore, reported a fall in pretax profit in the six months ending July 25 to £16.9 million from £19 million in the first half of 2014.

Revenue declined to £130.3 million from £135.7 million in the same period last year.

Barr said that the soft drinks market had been hit by price deflation and very poor weather, particularly in northern Britain.

The company noted that it also faced a tough comparative period the year before which was driven by better-than-average weather and the Glasgow 2014 Commonwealth Games.

The company warned that the difficult market conditions are forecast to continue into the second half of the year, and that while the business has been responding well to this, the weather has remained poor and sales momentum is not yet at the run rate the company had targeted. Sales have also been dented by a change in the company’s IT systems, while it closed a drinks carton plant in Tredegar, south Wales, and moved production to its Milton Keynes site.

AG Barr said it expects to achieve full-year results broadly in line with last year and grow profits in 2016.

It will also pay an interim dividend of 3.36 pence, up eight per cent on the 3.11p it paid the year before.

Chief Executive Roger White said: “We have delivered a number of significant system, business process and operational improvement projects over the course of the last 6 months, which will ensure we can successfully deliver our long-term growth and efficiency ambitions. These changes have been made against a challenging backdrop of stretching prior year comparatives, disappointing weather and tough market conditions.

“Our focus in the coming months will be to build our sales momentum and continue our long-term brand investment strategy.

“Market conditions across the first half have been difficult and are forecast to remain so.

"The business is responding well to the market challenges but the weather since we last updated the market in July has been poor and, although we have recovered some sales momentum, it is not yet at the run rate we have targeted.

“Assuming a satisfactory trading performance in the key Christmas period, the Board now expects the Company to deliver a full year result broadly similar to that achieved last year.

“As we look towards 2016 it is anticipated that the business will return to growth and begin to see the benefits of our improved operating platform.”

In its report to the Stock Exchange, the company extolled the performance of IRN-BRU.

AG Barr stated: “In the period we have continued to support the long-term growth of Irn-Bru, developing the brand across the UK as a whole, with national TV and digital advertising and the development of an exciting sponsorship plan with both the English Football League and the Scottish Professional Football League.

“The Irn-Bru brand continues to feature heavily in social media and digital channels, with positive consumer engagement during both our ‘Tartan Packs’ promotion and our ‘Bru Planet’ summer initiative.”