Shepherd Neame toasts jump in half-year sales

20th Mar 2024 12:40

(Sharecast News) - Pubs and brewing group Shepherd Neame reported a jump in half-term sales and earnings on Wednesday, as inflationary pressures started to ease.

The family-owned business, Britain's oldest brewer, said revenues in the 26 weeks to 23 December rose 4.3% to £89.0m. Underlying earnings before interest, tax, depreciation and amortisation grew 5.2% to £12.0m.

Pre-tax profits fell to £1.1m from £5.5m a year previously, however, when the figure was boosted by property sales.

Christmas trading was especially strong, the group noted, with like-for-like retail sales up 14.9% across December.

In total, interim retail sales rose 12.3% to £41.4m, while tenanted trade revenues edged up to £17.7m from £17.4m.

Brewing revenues, however, eased to £29.2m from £30.3m a year previously on lower volumes.

Jonathan Neame, chief executive, said: "I am pleased to report a strong trading period...and, at last, the easing of some of the inflationary pressures the company has faced in recent years.

"Consumer demand has remained robust, with exceptional trade over the Christmas period. It has been a particularly strong period for our London pubs, as people continue to return to their offices."

Looking to the second half, Shepherd Neame said retail sales in the 12 weeks to 16 March were up 4.9% on a like-for-like basis, while total beer volumes fell 11.8%.

Neame said: "The strong Christmas trade has given everyone a boost. Demand is robust, cost trends appear to be improving and the recruitment of good talent, while never easy, is more stable."

However, he cautioned: "While the inflation outlook is improving overall, we do face new inflationary challenges such as the further rise to the national Living Wage."

Founded in 1698, the Kent-based business employs around 1,800 people. Of its 296 pubs, which are spread across London and the south east, 219 are tenanted. Its beers include Spitfire, Bishops Finger and Whitstable Bay.