Britain’s oldest brewer Shepherd Neame have reported record revenue for the full financial year despite ongoing cost headwinds.
The Faversham-based brand, which owns and operates 291 pubs across the southeast, told markets this morning that revenue for the 53 weeks to 29 June grew by 3.6 per cent to a record £172.3m, from £166.3m in 2023.
Basic earnings per share reached 33.0p, up from 23.5p in 2023, and the pub group announced a 3.5 per cent increase in its full-year dividend, to 20.7p from 20p.
Statutory profit before tax grew by 38.1 per cent to £6.8m, from £4.9m in 2023.
Underlying earnings before interest, tax, depreciation and amortisation grew by 6.4 per cent to £25.1m, from £23.6m in 2023.
The company was hit hard by rising energy bills and rocky economic outlook during the cost-of-living, and reported a huge drop in profit last year. However, pressures have since begun to ease.
The company said it invested £14.6m during the year, from £17.2m last year, which was “primarily inward investment”.
Total retail like-for-like sales grew by 4.9 per cent, primarily driven by growth inside the M25, where sales increased by 14.5 per cent.
However, the listed pub group said that its own beer fell in popularity, with total volumes down 17 per cent.
Shepherd Neame said the fall was because it was pivoting from off-trade – sales in places like supermarkets, where alcohol is sold for consumption elsewhere – to on-trade sales in pubs.
Jonathan Neame, CEO of Shepherd Neame, said: “We have seen further good progress… we have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business.
“We have a strong pipeline of pub developments and new opportunities in our heartland on-trade. We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face.”