Fullers Financial results for the 53 weeks ended 1 April 2017 reveals adjusted profit before tax up 5% to £42.9m (2016: £40.9m), and revenue up 12% to £392m (2016: £350.5m).
EBITDA was up 8% to £70.5m (2016: £65m), and statutory profit before tax stood at £39.9m (2016: £39.2m).
The firm saw a strong performance from Managed Pubs and Hotels with like-for-like sales growth of 3.7%, driven by good growth in food and accommodation. Tenanted Inns like-for-like profits were marginally down 1%, and EBITDA per pub up 2%.
Total beer and cider volumes down 2%, but operating profits in The Fuller’s Beer
Company rose 5%.
The group invested £22m in its existing Inns estate, broadening the appeal of its pubs. During the period, the firm acquired five new pubs, added an additional 71 new bedrooms, and opened four new restaurants for The Stable and acquired a further 25% share, taking ownership to 76%.
In drinks news, sales grew across the craft beer range and Fuller's launched London Pride Unfiltered.
Current trading sees Managed Pubs and Hotels like-for-like sales up by 6.6% in the first nine weeks, and Tenanted Inns like-for-like profits are up 5%.
Total beer and cider volumes are up 7%, and Frontier has been crowned Champion Draught Lager at the 2017 International Beer & Cider Awards.
The firm confirms that impending cost pressures include business rates, Apprenticeship Levy, rising National Living Wage and recruitment pressures due to the UK’s departure from the European Union
Chief Executive Simon Emeny said, “It has been another good year for Fuller’s with a strong set of results for the Company. Food and accommodation have driven like for like sales growth in our Managed Pubs and Hotels and the targeted investments we have made in both new sites and redeveloping our existing estate have generated excellent returns. We have purchased five new sites and completed 25 major refurbishments in the last 53 weeks.
“We are only nine weeks in to the new financial year but we have had a very strong start, albeit against our softest quarter last year, with like for like sales in our Managed Pubs and Hotels up 6.6%, like for like profits in our Tenanted Inns up 5% and volumes in The Fuller’s Beer Company rising 7%.
“There are a number of headwinds that will have a significant financial impact on both Fuller’s and the industry as a whole, but we face the future in a strong position. Our Managed Pubs and Hotels are in good shape and although there is a lot of work and a long way to go, we have a clear vision and solid strategy for both our Tenanted Inns and The Fuller’s Beer Company.
“In short, while we are cautious and realistic about the future, we are well-placed to continue to delight our customers, recruit and develop the best team members and reward our shareholders.”