Shepherd Neame sales and profits lift despite selling less beer
The pub group and brewer said it shifted its beer business further away from retailers, such as supermarkets.
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Pub and brewing firm Shepherd Neame has revealed record revenues and a jump in profits despite selling less of its beer over the past year.
The Kent-based firm said it shifted its beer business further away from retailers, such as supermarkets, over the year, resulting in a significant slump in sales volumes.
However, it said its pub-focused strategy has been encouraging after pub-drinking habits normalised following the impact of the pandemic and cost-of-living pressures.
We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face
The company, which employs around 1,800 people, revealed that revenues grew by 3.6% to a record £172.3 million over the year to June 29, compared with the previous year.
It said this was particularly driven by a strong performance by venues in London and its tenanted pub business.
Shepherd Neame, which operated 291 pubs at the end of the year, saw total like-for-like sales grow by 4.9% across its pub estate, driven by a 7.2% increase in drink sales.
Pubs within the M25 reported a 14.5% jump in like-for-like sales as the return of more office workers helped support sales.
Meanwhile, the Spitfire and Bishops Finger brewer said total beer volumes fell by 11.8% compared with the previous year, driving a 7.4% fall in revenues from its brewing and brands division.
The company said however that profits from its beer business grew as it pivoted from the off-trade, which means retailers including supermarkets, to on-trade customers, meaning hospitality operators such as pubs.
Shepherd Neame said that group pre-tax profits rose by 38.1% to £6.8 million for the year.
Jonathan Neame, chief executive of Shepherd Neame, said: “We have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business.
“We have a strong pipeline of pub developments and new opportunities in our heartland on-trade.
“We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face.”