Adnams sees uplift
Suffolk-based brewer and pub operator Adnams has reported a recovery in trade in the first quarter of 2011 and a marked uplift in April due to the good weather.
Beer volumes were 3.1% ahead of 2010 at the end of April, having been 1.5% ahead at the end of Q1, the company revealed at its AGM today (6 May).
In March, the company reported an 8% decline in own-beer volumes for the 12 months to 31 December 2010.
In a statement, Adnams said: "In our 2010 accounts we continued to be cautious regarding the outlook for this year. Tax increases and public sector cutbacks cannot be positive for our business in the short term.
"Beer industry statistics show that volumes have continued to decline. In the cask ale market, despite an improvement in January, volumes in the first quarter were 2.5% lower than a year earlier. However, the notably good weather that we enjoyed in April will inevitably have brought some improvement."
Adnams said its direct delivered beer business "continues to show good growth, but sales to the large leased and tenanted pub estates have been under considerable pressure". Sales of bottled and canned beers for the take-home market "have also shown growth, after a disappointing performance in 2010".
"Despite the pressure on the retail sector in the UK, our Cellar & Kitchen stores have had a fairly encouraging first four months. Trading was quite tough in February and March, but has been much stronger in April; undoubtedly the improved weather has played a part in this.
"Our hotels too have performed reasonably well in the first four months. Some of this is attributable to the move from managing properties in our own name to managing under contract. The latter produces a much smoother flow of profits over the year.
"We have, however, incurred some cost in exiting contracts. Tenanted pubs have not had an easy time of late, though the first quarter of 2011 has been less harsh than some.
"We believe that 2011 will be a challenging year, but our long-term forward-looking approach will continue to serve us well."
In its full-year results for 2010, Adnams reported operating profit of £3.188m, slightly down on 2009's £3.238m but representing a good performance as operating profit had been 10% down on 2009 at the half year.
