St Austell Brewery has reported an underlying operating profit of £11.3m for the 52-weeks to 1 January 2022, returning the business to profit following the struggles of the pandemic.

Overall turnover increased by 33% to £156.6m, despite the closure of all of its pubs and hotels for the first four months of the financial year, with total revenue for its 180-strong Pubs, Inns & Hotels division increasing coming in at £62.6m (2020: £47.1m).

Revenue within its managed sites rose by 30% on 2020 and was up by 38% within its tenanted estate. Its Beer & Brands division saw revenues up 37% at £93.2m (2020: £68.1m).

Overall, the company generated £17.9m of underlying EBITDA (2020: £3.7m).

Kevin Georgel, chief executive, St Austell Brewery said that although its 2021 results were impacted by lockdown at the start of the year, it went on to experience “unprecedented levels of demand in the South West”, particularly in the first four months after its pubs reopened.

“Our main challenge for the remainder of the year was maintaining supply to meet this demand, whilst continuing to deliver a positive experience for all of our customers,” Georgel said.

“This challenge was made even more difficult by the national labour shortage and failings within the supply chain. In this context, we are extremely proud of our teams across the business for overcoming every obstacle and achieving such strong results. I am confident that as we move forward, we have emerged better placed to embrace the opportunities that lie ahead.”

Georgel said the business entered 2022 in a much stronger financial position with a clear strategic direction that would enable it to unlock its potential.

“We have significant headroom in our available funding, which will allow us to invest in growing the business, whilst pursuing fitting acquisition opportunities,” he added.

“We are continuing to invest in our pub estate which is well positioned to take advantage of emerging consumer trends, and our beer business is delivering significantly improved returns as we curate a brand portfolio that’s fit for the future.

“Critically, we are also committed to continued investment in recruitment and the development of our people. Attracting talent to our business and releasing the potential of our teams is more important than ever.

Despite the inevitable headwinds the business will face due to inflationary pressures, Georgel said the business remained confident and optimistic about its long-term growth prospects.”

Will Michelmore, non-executive chairman, St Austell Brewery added: ““I am delighted to report that, despite the ongoing disruption we continued to face in 2021, our latest financial results show a return to profitability as the company continued to recover from the impact of the pandemic.

“It’s very encouraging to report that once pubs were able to reopen, we managed to enjoy strong trading results. This will stand us in good stead for 2022 and beyond, as we look to build on our solid foundations and release the full potential of the business.”

Topics