Shepherd Neame said it had performed well with encouraging demand with like-for-like sales in its pubs and hotels up 13% in the six weeks to 25 June 2022.
This period directly compares to the period when indoor trading reopened again in spring 2021.
However, like-for-like sales in its retail (pubs and hotels) division for the same six-week period compared to 2019 were down 4.1%.
Providing an update on trading following the close of its financial year on 25 June 2022, the family pub operator and brewer said that overall trading across the 52 weeks of the year has been in line with expectations.
Its coastal locations, in particular, had benefitted from their attractive locations and outdoor space. While footfall has been improving in its central London pubs, they are yet to see a full recovery.
Income from its tenanted estate has continued to rise versus 2021, but volumes are lower than pre-pandemic.
Own beer volumes in all channels for the six weeks to 25 June vs 2021 were up +2.0%. Own beer volumes in all channels for the 6 weeks to 25 June vs 2019 were down -3.0%.
Shepherd Neame said it had emerged from the pandemic strongly and was actively pursuing opportunities invest and grow again.
Cash generation has been strong and net debt reduced to the lowest level since 2018, it said.
The business said that while the inflationary environment was challenge, it had long-term fixed price contracts in place for certain items and is taken mitigating action in other areas, through menu management and price increases to soften the impact.
It said it was also choosing to invest more in areas such as property, marketing and people development for the long-term strength of the company.
Jonathan Neame, CEO of Shepherd Neame said: “Since Covid restrictions have been lifted, we have been encouraged by levels of demand and are enjoying strong performance across our business. In spite of external economic headwinds, we remain optimistic that we will continue to see similar levels of demand across the summer.
“We are very pleased to welcome Jonathon Swaine to the team at a time when we are recommencing investment in our pub estate.
“We are mindful of the many challenges ahead, but the business and our team have demonstrated extraordinary levels of resilience in the last two years, and we have no doubt we have the skills and platform to find opportunities to grow and develop in the future.”
Swaine joined on 27 June 2022, as managing director, pubs and was appointed to the board on 28 June 2022.
Jonathan Neame will be speaking at MCA’s Pub Conference. To find out more or to book tickets please click here.
