Shepherd Neame sales rise 13%

Shepherd Neame has revealed its retail sales grew 13% year-on-year for the six weeks ending 25 June 2022, compared with the same period last year when indoor trading was allowed again on 17 May 2021.

Shepherd Neame is Britain’s oldest brewer and owner and operator of 299 pubs in Kent and the South East. Sales at the company’s coastal pubs and hotels are improving in particular, although its Central London pubs are still to see a full recovery post-pandemic.

Meanwhile, same outlet like-for-like retail sales for the six weeks to 25 June are down -4.1% from pre-Covid levels, although footfall is reportedly improving.

Own beer volumes in the same period grew 2% year-on-year, although this is down 3% compared to pre-Covid levels.

Overall, it confirmed sales for the full year (52 weeks to 25 June 2022) have been in line with expectations, and Shepherd Neame said it has emerged from the pandemic “strongly” and is actively pursuing opportunities again to invest and grow.

It added its Net debt has reduced “significantly” in the last year with “strong” cashflow, tight cost control and reduction in capital projects. Since its peak in December 2020, total indebtedness has reduced from £96.5m to £75.3m, the lowest level since 2018.

Additionally, Jonathon Swaine joined the company as managing director of pubs on Monday (27 June 2022), and was appointed to the board yesterday (28 June 2022).

Jonathan Neame, CEO of Shepherd Neame, said: “Since Covid restrictions have been lifted, we have been encouraged by levels of demand and are enjoying strong performance across our business. In spite of external economic headwinds, we remain optimistic that we will continue to see similar levels of demand across the summer.

“We are mindful of the many challenges ahead, but the business and our team have demonstrated extraordinary levels of resilience in the last two years, and we have no doubt we have the skills and platform to find opportunities to grow and develop in the future.”