Fuller’s have this morning reported a 3.6% increase in like-for-like sales across its managed division for the 26 weeks to the 30 September, helped by an 8.2% rise in like for like accommodation sales.
Like for like food sales across the company’s managed estate rose by 3%, despite prices being held as “we chose to absorb some recent food price inflation”. On the bar, where prices have risen, like for like drinks sales increased 3.4%.
During the half year, Tenanted Inns like for like profit increased 3%, with 11 pubs sold and average EBITDA per pub rising 7%.
Total beer and cider volumes for The Fuller’s Beer Company rose 1% during the period, which the company said was against a flat UK market.
Revenue for the half year climbed 6% to £209.3m; whilst EBITDAwas up 4% to £37.6m. Adjusted profit before tax rose 4% to £23.8m.
In regards to its 17-strong The Stable business, Fuller’s said it was performing in line with expectations and that it had fully integrated all supply chain and financial processes.
The company said that in the 33 weeks since 1 April 2017, like for like sales in its managed pubs have risen 3.7%, while like for like profit in it tenanted Inns is up 2% and total beer and cider volumes in The Fuller’s Beer Company are up 1%.
Chief Executive Simon Emeny 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.
“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.”
During the period the company launched its new six-year turnover based offer in its tenanted division and it said that this had been well received with seven pubs now on this agreement.
The company said: “These pubs benefit from joint capital investment projects and the sharing of turnover across food and drinks allows these tenants to access free trade beer pricing. The offer is broadening the appeal of our Tenanted Inns, attracting entrepreneurial tenants with a passion for food from other industry sectors and we are very pleased with the progress.”
As part of the strategic review of its Tenanted Inns, the group has launched a new partners’ website and is looking at more ways to leverage the knowledge gained from its Managed Pubs, share access to initiatives around food and chef development and continue to improve pub design.
It said: “While there is still a long way to go, the early signs for the new agreement and the other strategic workstreams in our Tenanted Inns are very positive. Tenants are benefiting and we are seeing a rise in beer volumes in those pubs on the new agreement as well as an improvement in the overall customer offer. We look forward to reporting further progress in this area in the coming months.”
