Shepherd Neame says it has recorded strong demand since its pub re-opened after pandemic closures.
Reporting its full year results, the company said cashflow was good and net debt was reducing. But supply chain challenges and inflation costs would persist into 2022.
Total revenue for the year to 26th June was £86.9m, and the underlying operating loss before tax was £4.2m.
For the initial period from 12th April (when pubs re-opened) to 16th May, open retail pubs achieved 62% of 2019 sales. From 17th May, when indoor trading resumed, to the year end on 26th June, those same sites achieved 97% of 2019 sales.
Total beer volume has been resilient throughout the pandemic. The brewery has obtained new on-trade customers since re-opening, and new listings in other channels. Total volume in all channels was +8.4% in May and June versus 2019.
The start of the new financial year has been encouraging, the company reports. Demand for food and accommodation, in particular, has been strong since July. Drinks trade is recovering since the return to offices in London from September.
Challenges ahead
Chief executive, Jonathan Neame, said: “We are greatly encouraged by the customer response since re-opening and are confident that beer and pubs remain every bit as core to British life as pre-pandemic.
“We have spent the last year productively: building a better business, strengthening our brand presence, and maintaining our pubs to be in optimal shape for re-opening. Our relationships with our licensees remain strong and we have few tenanted vacancies. We feel we are in the best shape we can be, in the circumstances, and this has resulted in a strong and sustainable recovery.”
He added: “We face challenges ahead, particularly with supply chain and inflationary pressures. That said, we are confident that the long-term fundamental drivers for the business remain strong, including the ongoing infrastructure investment in our heartland, anticipated local population growth, changes in consumer and workplace trends, and our position at the centre of the community.”
