Fuller’s cheers ‘strong’ trading as cost inflation eases further
The 332-strong pub group said profit margins are ‘recovering’ due to easing inflationary pressures.
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Pub firm Fuller’s has hailed a “strong start” to the financial year amid a boost from easing cost inflation.
The company, which runs 332 pubs and inns across the UK, said it saw “strong” sales in recent weeks as trading momentum continued.
Like-for-like sales grew by 5.3% for the 16 weeks since the end of March, Fuller’s said.
The company added that its profit margins are “recovering” due to easing inflationary pressures, with food and drink cost inflation significantly slowing over the past year.
Simon Emeny, chief executive of Fuller’s, said: “I am delighted to see our sales growth momentum continue, particularly against the backdrop of easing inflation, which will help us to grow margins and profit, as well as revenue.
“You can feel the positivity across the business, with our team members working energetically to drive our continued success.
“We have had a strong start to the financial year, and we look forward to the opportunities the future will bring.”
In May, Fuller’s also secured the sale of 37 of its “non-core” pubs to rival Admiral Taverns for £18.3 million, and also completed the sale of The Mad Hatter pub in Southwark.
The group told investors that the deal has helped to strengthen its balance sheet and reduced its net debt to £92 million.
On Tuesday, Mr Emeny also called on the new Labour Government to stand by commitments to shake up the business rates system of property tax, which has faced fierce criticism from hospitality bosses in recent years.
He said: “We have a new UK Government in place, and I urge Sir Keir Starmer to stand by his commitment to overhaul our archaic business rates system.
“The Labour Party has a clearly stated objective to grow the economy and the hospitality sector can be an excellent engine to help deliver that growth.”
Shares in Fuller’s were flat at 715.6p in early trading.
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