St Austell Brewery, the maker of beers including Tribute and Proper Job, saw its sales rise to record levels during 2023 despite the increase in costs hitting the industry.
The Cornwall-headquartered group, which was founded in 1851, has posted a revenue of £229.5m for the 12 months, up 10 per cent, while its operating profit grew by 15 per cent to £13.2m.
Family-owned St Austell Brewery owns over 160 pubs, inns, and hotels across the West Country – including managed houses and tenancies.
It also operates two breweries, in St Austell and Bath, having acquired fellow West Country brewer, Bath Ales in 2016.
St Austell Brewery ‘remains optimistic’ for the future
Non-executive chairman Will Michelmore said: “I am pleased to report that St Austell Brewery has once again achieved record turnover, but importantly, this increase in sales has also been converted into improved operating profit.
“We are very proud of these results given the challenges that the company and wider sector continues to face.
“Costs have increased significantly during this financial year – particularly on food and labour – while the cost-of-living crisis has continued to reduce levels of disposable income and change consumer behaviours.
“Despite the challenging trading environment, demand for our beers and the offer in our pubs has remained strong.
“We continue to be optimistic about our long-term prospects and remain confident that we have the leadership and focused strategy that will ensure the company’s continued growth and future success.”
Brewer battles ‘sustained headwinds’ to grow profits
Chief executive Kevin Georgel added: “2023 was a year in which we made significant progress against our ambition to release the full potential of the business.
“We have continued to invest in our people and our high-quality pub estate, whilst future-proofing our beer brands and drinks portfolio.
“As a result of this continued investment, and the contribution of our dedicated and talented teams, I am confident that we are delivering great experiences for our customers all year round, and this is generating strong profit growth.
“Throughout the year, inflation reduced from the peak of 2022, however cost challenges in our sector continued.
Will Michelmore is the non-execKevin Georgel is the chief executive of St Austell Brewery.utive chairman of St Austell Brewery.
“Considering these sustained headwinds, we are pleased to report a 15 per cent increase in profitability, in addition to delivering record revenues for a second consecutive year.
“These results are testament to our all of our teams as well as our tenanted business partners. I would like to take this opportunity to thank them all for their continued hard work and support.
“With the cost of living continuing to impact people across the country, we remain committed to delivering excellent value.
“We are, first and foremost, an experiential business and it is our ambition to exceed the expectations of every guest, whether they’re visiting one of our pubs or drinking one of our beers.
“Our financial performance compares strongly with the market, and we remain a profitable, strongly cash-generative business with a clear strategic direction.
“We are focused on continued growth, harnessing the momentum we’ve built and diversifying our offer – where appropriate – to ensure that the business evolves positively and remains fit for the future.”