Shepherd Neame annual profit surges despite ongoing cost headwinds

(Alliance News) - Shepherd Neame Ltd on Wednesday said its annual profit has risen nearly 40% ...

Alliance News 2 October, 2024 | 3:05PM
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(Alliance News) - Shepherd Neame Ltd on Wednesday said its annual profit has risen nearly 40% following strong like-for-like sales, despite challenges with inflation and labour costs.

The Faversham, Kent-based brewer and pub operator said statutory pretax profit for the 53 weeks to June 29 was GBP6.8 million, up 39% on-year from the GBP4.9 million reported for the 52 weeks to June 24, 2023.

Revenue rose 3.6% to GBP172.3 million from GBP166.3 million, whilst underlying pretax profit for the 53-week period grew 3.9% to GBP7.9 million from GBP7.6 million.

Total retail like-for-like sales for the year were up 4.9%, with like-for-like drink sales rising 7.2% higher. However, despite beer profits rising, volume fell year-on-year by 12%. Like-for-like own brewed volume fell 17%.

Shepherd Neame declared a full-year dividend of 20.70 pence, up 3.5% from 20.00p last year.

Chief Executive Officer Jonathan Neame said: "This year has seen further good progress for the business. Whilst we continue to meet cost and operational challenges along the way, our business is fundamentally strong and remains very well-positioned for the future. Sales and gross margins have recovered, but we face above-inflation cost increases in labour, logistics and packaging waste, which will slow our progress. Our Christmas and recent summer trade has shown that when the circumstances are right, we can trade strongly and profitably.

"After a damp start to the new financial year, the sun finally started to shine from mid-July through to the end of August, before cooler weather returned in September. For the 13 weeks to September 28, like-for-like sales in our retail pubs were 3.8% higher compared to financial 2024. Like-for-like tenanted pub income for the nine weeks to August 31 were up 3.1% compared to financial 2024. Total beer volume for the 13 weeks to September 28 was down 12% from 2024, and own beer volume fell 13% compared to 2024.

"We are optimistic about the consumer outlook and are well-positioned for the future, notwithstanding the ongoing cost headwinds we face."

Shares in Shepherd Neame were up 1.7% at 587.50 pence each on the Aquis Exchange on Wednesday afternoon.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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Shepherd Neame Ltd 600.00 -

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