Fuller’s issues profit warning as rail strikes wipe £4m from sales
Despite this, the group reported that like-for-like sales in the 43 weeks to 21 January 2023 were up by 20%, while sales were at 97% against the same period in FY20
Fuller’s has warned its full-year earnings may be lower than expected after its profitability was dented by rail strikes in recent months.
Since the start of October, the group estimates that strike action wiped £4m from its sales, adding that the consequent impact on profitability means earnings may be below market expectations for the full-year.
Despite this, the group reported that like-for-like sales in the 43 weeks to 21 January 2023 were up by 20%, while sales were at 97% against the same period in FY20.
Sales for the four-week Christmas and New Year period also rose by 38% after last year’s festive trading period was impacted by Covid restrictions and work from home guidance.
Nonetheless, due to the impact of the train strikes, sales compared to the same four weeks in 2019 fell by 5%.
CEO Simon Emeny said: “We are encouraged by our underlying sales performance. While it is frustrating that the train strikes have set back our reported sales and earnings, it is reassuring that we are achieving our anticipated sales trajectory in periods unaffected by strikes.
“While ongoing strike action will dampen sales, demand from customers remains good and we are optimistic that 2023 will deliver further sales growth through a busy calendar of events, and as office workers and tourists continue to return to the Capital.”
He added: “We are operating in a high inflation environment, and that continues to impact our operating costs and margins. While some of these costs may be temporary in nature, others – such as the National Living Wage increase – are more permanent and we are focused on taking action to mitigate these costs wherever we can.
“Although strike action and the cost-of-living crisis create short-term hurdles to our post-pandemic recovery, we remain confident in the resilience of the pub and the future opportunity for Fuller’s. We are a long-term business, and we will continue to invest in our people, in our properties and in providing excellent reasons for our customers to visit.”