Salford brewer and pub owner Hydes — celebrating its 160th anniversary this year — has reported record turnover for the year to 2nd April.
The family-owned independent business delivered turnover of £34.1m, despite challenging economic conditions. The record figure is up £5.8m on 2022’s £28.3m.
Hydes, with its brewery in Media City, was formed in 1863 and supplies beers to wholesalers, pub companies, and other brewers throughout the UK. It has a pub estate of nearly 50 venues across the North West of England and North Wales.
Soaring inflation, high energy costs, a tight labour market and rising interest rates all contributed to extremely difficult trading conditions for the hospitality industry as a whole. Decisions made in previous years to fix energy costs until 2024 and enter long-term contracts with major suppliers ensured Hydes was shielded from some of the worst impacts of inflation.
Accounts also show that the brewery was affected by significant cost increases in food and consumable goods. Staff recruitment, particularly in kitchens, also presented a challenge, resulting in higher payroll costs.
The financial year saw an operating profit of £2.2m, the same as 2022. The previous year had significant government support in the form of grants and rates relief (£1.2m), plus VAT reductions on food and soft drinks.
“In a year marked by unprecedented challenges in the hospitality industry, Hydes has demonstrated remarkable resilience, innovation, and customer loyalty, resulting in a record-breaking turnover in its 160th year of operation,” said chairman Richard Lancaster.
“This significant achievement not only highlights the brewery’s commitment to delivering exceptional products and services, but also underscores its integral role in the communities it serves. Investment in our pubs and our people is top priority, and this will continue apace throughout the next financial year.
“Significant turbulence remains, with inflation still high, interest rates expected to rise further, and staff recruitment still proving to be a major headache. However, our achievements over the past 12 months have paved the way for future growth. We enter the new financial year with strong trading momentum and confidence that we will continue to deliver on our strategy.
“Hydes has a strong portfolio of sites which are all in excellent condition and trading well, a brewery producing increasing volumes across a range of quality beers, and a dedicated and capable workforce throughout its pubs and at head office.”
