Heavitree returns to profit in FY22
Nonetheless, the brewery warned of rising costs that will ‘put pressure’ on its operators in the year ahead
Heavitree has reported an operating profit of £1.42m in FY22, up from a loss of £59,000 the prior year, as the group “finished the year returning numbers similar to those achieved before the start of the pandemic”.
The year saw the brewery increase its turnover by 57.64% to £7.28m against the previous year’s figure of £4.62m and this includes a reduction in rental income of £230,000.
Nonetheless, the group noted that hikes in the cost of living, rises in mortgage rates and the cost of doing business are “inevitably putting pressures on the general trading environment for all our operators”.
It warned that energy costs were of a “particular concern”, and said it had seen some renegotiated contracts during the last six months which resulted in a “tripling, or even quadrupling” of electricity and gas costs.
It added that the “extraordinary” wholesale beer price increases announced by one of its main suppliers has also put pressure on the business, as a 9% increase in September of last year was followed by a further 15% increase in January of this year.
While the group said these beer price rises are “not immediately impacting our pubs due to timings within our contractual agreements”, it warned that some level of increase will be applied during the year ahead.
