Brewer and pub giant, Fuller’s has reported its half year results for the 26 weeks ended 30 September 2017, showing that adjusted profit before tax was up 4% to £23.8m (2016/17: £22.8m).
Revenue rose by 6% to £209.3m (2016/17: £197.6m) and EBITDA up 4% to £37.6m (2016/17: £36.3m).
Managed Pubs and Hotels outperformed the market, with like-for-like sales growing by 3.6% and a rise in like-for-like accommodation sales of 8.2%.
Tenanted Inns like-for-like profit increased 3%, with 11 pubs sold and average EBITDA per pub rising 7%.
During the period, total beer and cider volumes for The Fuller’s Beer Company rose by 1% against a flat UK market.
The pub estate has seen a further four bedrooms added during the first half, with 14 more since the period end. Four managed sites are in the pipeline and plans continue to grow the Tenanted part of the business.
Current figures show Managed Pubs and Hotels like-for-like sales are up by 3.7% for 33 weeks, and Tenanted Inns see like-for-like profit rise by 2%. Also, total beer and cider volumes increased by 1%.
The company has acquired The Manor near Christchurch, a freehold pub with 10 bedrooms, and there are two new sites in key transport locations – Euston (The Signal Box) and Liverpool Street (The Parcel Office) – due to open in 2018.
Chief Executive Simon Emeny (pictured) said, “I am delighted to be reporting good financial figures with all the Group’s key measures moving in a positive direction. This growth has been driven by our Managed Pubs and Hotels, which generate the largest share of our turnover and profit and have once again outperformed the market.
“The last six months have seen some unprecedented influences on the business, not only in our particular industry, but in the context of the wider UK economy and global political scene. I cannot remember a time when we have faced such an array of additional cost pressures, particularly in our Managed Pubs, starting with the 26% rise in business rates.
'The pub sector is now responsible for 2.8% of the total business rates bill, despite only generating 0.5% of total turnover. Over and above this increase, we have met with rises in the Apprenticeship Levy and National Living Wage rates, but in spite of this, we have continued to grow, delivering consistently strong returns for our shareholders. This is due to a clear, shared vision and a commitment to delivering an outstanding customer experience across the business.
“In the 33 weeks since 1 April 2017, like for like sales in our Managed Pubs have risen 3.7%, while like for like profit in our Tenanted Inns is up 2% and total beer and cider volumes in The Fuller’s Beer Company are up 1%.
“Although we have already faced and absorbed a number of prevailing headwinds, future economic and political uncertainty may still cause further challenges, however we are well-placed to face these.
'I am confident that our long-term vision, clear strategy and commitment to ongoing investment, delivering an outstanding customer experience throughout the business and creating an atmosphere in our pubs that cannot be rivalled at home, will ensure our further growth.”