Shepherd Neame returns to FY profit as sales rebound
The group also acquired four pubs post year-end for £6.7m and that the outlook for business remains ‘strong’, with ‘encouraging’ demand.
Shepherd Neame has reported a statutory profit before tax of £7.4m for the 52 weeks ended 25 June after a loss of £16.4m the year prior.
The brewer, owner and operator of over 300 pubs in Kent and the Southeast, also saw an EBITDA of £23.4m, which “significantly rose” from £7.7m in 2021.
Shepherd Neame said the period under review has been “dominated by the impact of Covid-19 in the first half and by the effects of the war in Ukraine in the second half”, stating that the company is “pleased to have achieved the strong rebound in sales and profits”.
For its 63 retail pubs and hotels, total retail like-for-like sales were -8% compared with those of 2019 and +130% compared with those of 2021 for the 52 weeks to 25 June 2022 with footfall outside London near normal and strong in its coastal estate.
Total like-for-like drink sales were -16% compared with 2019 and +168% compared with 2021 and like-for-like food sales were -1% compared with 2019 and +94% compared with 2021.
Total like-for-like accommodation sales were +25% compared with 2019 and +111% compared with 2021.
The group also acquired four pubs post year-end for £6.7m and own beer volumes were -8% compared with 2019 and +16% compared with 2021.
Jonathan Neame, CEO of Shepherd Neame, said: “Shepherd Neame has rebounded well from the challenges of the last two years – a testament to the strength of the business model and depth of talent across the business. The Company has strengthened its balance sheet through tight cash management and net debt reduction and continues to evolve operationally to meet changes in the market.
“Our business is in good shape and has traded well through the summer. Whilst we are cautious about the winter ahead and the inflationary environment, we retain an optimistic view for the business and continue to seek investment and acquisition opportunities for the long term.”
The company said that the outlook for business remains “strong”, with “encouraging” demand. It said that in the short term, there “may be challenges with many political and economic uncertainties ahead”.