Punch Pubs & Co has seen a “much more stable” operating environment in the past months, resulting in strong EBITDA growth with more to come, according to CEO Clive Chesser and CFO Steve Dando.
Speaking on an investor call, the management team discussed the 1,240-strong pubco’s Q2 FY24 results, which saw it grow underlying EBITDA for the pub estates by 12% to £58.6m.
“We’re very confident and happy with our profit performance,” Dando said. “Following pressures and the energy crisis the industry went through 18 months ago, we’ve seen a much more stable operating environment.”
He further attributed profit growth to maturing pubs as well as easing inflationary pressures. All three divisions – Leased & Tenanted, Management Partnership, and Laine – saw profits rise by £2.5-4m.
“We have identified further EBITDA and cost saving opportunities not currently realised in our P&L today,” Dando added. “These will boost our profits over the next 12 months.
“We’re very happy with our cost control, conversion, and also our revenue performance, significantly up on the prior year.”
Punch Pubs grew revenues by 4.4% to £165.1m in Q2 FY24 year-on-year.
Earlier this year, the group acquired 24 pubs that belonged to the former Wear Inns portfolio prior to the latter going into administration.
Out of these, eight will be converted to the Management Partnership division over the next 12 months. This is on top of a further 70 pubs from the Leased & Tenanted estate, which have been identified for conversion over the next three years.
