Shepherd Neame, the UK’s oldest brewer and owner of 302 pubs, has revealed that its business bounced back from the effects of the pandemic in the second half of last year, although it warned of tougher times ahead.
Over 26 weeks ended 25 December 2021, the group’s revenue jumped 54.5% to £78.7m, with underlying EBITDA increasing from £3.4m to £11.3m.
The company said most of its central London pubs were nearing normal sales after pandemic restrictions were eased and back-to-work footfall increased.
On current trading, Shepherd Neame revealed that like-for-like sales were up 110% for the 13 weeks to 26 March, compared to an equivalent period at the start of the pandemic in 2020.
Jonathan Neame, CEO of Shepherd Neame, commented: “I am pleased to report a strong rebound in the first half of the year despite ongoing restrictions and operational challenges during the period. We are now back to pre-pandemic trading levels, have strong cash flow and have returned to profitability.”
However, he warned that the business was facing a hit from cost pressures in the coming months.
“Our business is in good shape and has traded well following the lifting of all restrictions,” said Neame. “However, the current economic uncertainties are putting inflationary pressure on the sector which will impact margins.”
He said that the business was still looking to the future with “cautious optimism” and that it was “excited about delivering an uninterrupted Easter and summer for the first time in three years.”
Earlier this week, Suffolk-based brewer and pub operator Adnams has warned that the price of a pint of beer is likely to increase significantly by Christmas due to surging barley costs because of Russia’s invasion of Ukraine.
