One key focus for the drinks firm following the acquisition of Boost, the energy drink, was to improve operating margins considering that the newly purchased brand operates at a much lower margin due to outsourcing production. AG Barr added: "Our medium-term plan to rebuild operating profit margin is progressing well, supported by brand and portfolio development, group manufacturing optimisation and disciplined cost control." Expecting the group's margins to remain subdued over the medium term, Shore Capital still keeps confident about the group's offering pointing to "a leading stable of proprietary brands, a world-class manufacturing infrastructure and a very strong balance sheet". "We see much to like," the investment firm concluded. Shares in AG Barr remain subdued on Tuesday trading flat, having opened at around 498p.