GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » AG Barr PLC (LSE:BAG) » Definitions » Operating Income

AG Barr (LSE:BAG) Operating Income : £47.2 Mil (TTM As of Jul. 2024)


View and export this data going back to 1970. Start your Free Trial

What is AG Barr Operating Income?

AG Barr's Operating Income for the six months ended in Jul. 2024 was £24.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 was £47.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AG Barr's Operating Income for the six months ended in Jul. 2024 was £24.3 Mil. AG Barr's Revenue for the six months ended in Jul. 2024 was £221.3 Mil. Therefore, AG Barr's Operating Margin % for the quarter that ended in Jul. 2024 was 10.98%.

Warning Sign:

AG Barr PLC operating margin has been in a 5-year decline. The average rate of decline per year is -3.9%.

AG Barr's 5-Year average Growth Rate for Operating Margin % was -3.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AG Barr's annualized ROC % for the quarter that ended in Jul. 2024 was 12.15%. AG Barr's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 was 33.73%.


AG Barr Operating Income Historical Data

The historical data trend for AG Barr's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AG Barr Operating Income Chart

AG Barr Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.00 32.40 42.00 44.00 50.10

AG Barr Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.50 18.50 27.20 22.90 24.30

AG Barr Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was £47.2 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AG Barr  (LSE:BAG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

AG Barr's annualized ROC % for the quarter that ended in Jul. 2024 is calculated as:

ROC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=48.6 * ( 1 - 24.9% )/( (307.1 + 293.6)/ 2 )
=36.4986/300.35
=12.15 %

where

Note: The Operating Income data used here is two times the semi-annual (Jul. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

AG Barr's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2024  Q: Jul. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=50.2/( ( (114.2 + max(28.5, 0)) + (112.4 + max(42.6, 0)) )/ 2 )
=50.2/( ( 142.7 + 155 )/ 2 )
=50.2/148.85
=33.73 %

where Working Capital is:

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(59.8 + 36.5 + 4) - (41 + 0 + 30.8)
=28.5

Working Capital(Q: Jul. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(94.1 + 35.6 + 2.3) - (86.9 + 0 + 2.5)
=42.6

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jul. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

AG Barr's Operating Margin % for the quarter that ended in Jul. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2024 )/Revenue (Q: Jul. 2024 )
=24.3/221.3
=10.98 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


AG Barr Operating Income Related Terms

Thank you for viewing the detailed overview of AG Barr's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


AG Barr Business Description

Traded in Other Exchanges
Address
4 Mollins Road, Westfield House, Cumbernauld, GBR, G68 9HD
AG Barr PLC manufactures, distributes, and sells a range of beverages in the United Kingdom. It distributes its products to wholesalers and retailers. The company's brands include Irn-Bru, Rubicon, Strathmore, and Funkin. It operates in three business segments which include Soft drinks, Cocktail solutions, and others. The majority of sales come from the soft drinks segment, which includes two business units, Barr Soft Drinks, and Boost Drinks. Geographically it generates key revenue from the United Kingdom.

AG Barr Headlines

No Headlines