Despite the tough trading conditions in the hospitality sector, pub group Fuller’s has reported a surge in annual profits as it upscales its estate amid a switch to tenanted outlets.
Over the year to 30 March 2024, the group’s revenue rose 7% to £359.1m, with like-for-like sales up 11.0%. This meant it outperformed the industry’s CGA RSM Hospitality Business Tracker on average by four percentage points.
Food like-for-like sales increased by 14.5%, whilst drink rose by 9.8%. Its accommodation business saw sales rise by 7.8%.
Adjusted pre-tax profit jumped 61% to £20.5m, driven by the strong sales performance and the transfer of 23 pubs from Managed to Tenanted Inns. Fuller’s also invested some £27.2m in refurbishing some of its pubs, with the aim of broadening their appeal to new audiences.
Ahead of Euros, a key event for the pub sector, the group said sales in the last 10 weeks had already risen year-on-year by around 4.4%.
CEO Simon Emeny commented: “Fuller’s has delivered these excellent results in the last financial year, despite the high inflationary environment.
“As of today, those inflationary pressures – especially in regard to food and energy – have reduced, which gives us additional confidence in the coming year.”
He added: “With the solid financial foundation of a strong Balance Sheet and a first-class, predominately freehold estate of iconic pubs and hotels, combined with a team that has the ability and capacity to drive the business forward, we are confident and excited by the opportunities the future will bring.”
Last month, Fuller’s agreed terms to sell 37 of its pubs to Admiral Taverns. The cash proceeds from the deal will be £18.3m, which will be used to strengthen its balance sheet and invest in its pubs and acquisitions.
