Adnams reports rise in sales and profits

Sales grew 4.3% to £56.9m and pre-exceptional operating profit rose 3.5% to £3.4m. Pre-tax profits increased from £1.3m to £3.2m. Adnams beer volumes grew 3.8% in the year, with take-home volumes up 14%.

Adnams announced a final dividend up 2.4% to £1.28.
The company sold two pubs in the year and said it is "currently looking at further sales".
"Our pubs business enjoyed a very good 2011 and continued to do well in 2012," Adnams said.

"We are fully aware of the economic pressures on pubs and closure rates are still running at around eighteen per week. Amongst other things, pubs have had to contend with the smoking ban imposed in 2007, with exceptional increases in beer duty, with widening leisure opportunities, with growing price competition from supermarkets (who have often used alcohol as a loss leader), and with an increasingly vocal health lobby."
Its brewing and brands business made a profit of £1.8m in 2012. "This was 4% down on the previous year, though without the loss that we suffered as a result of the insolvency of the large wholesaler, Waverley The Beer Seller, the result would have been ahead of 2011."
The company said it has experienced "strong growth" at its distillery for the period it has been open, just over two years.
The company said: "It is difficult to be too positive about an economy where things feel hard and give little sign of being about to improve. Our markets are tough ones and 2013 has begun as 2012 ended with difficult trading conditions, exacerbated in January with a covering of snow.

"Nonetheless we did many of the right things to improve our performance in 2012 and we believe that our long-term view will continue to hold us in good stead over the years to come. I am grateful for your continued support."

Jonathan Adnams, chairman, said: "Adnams enjoyed a good year in 2012, despite the challenges of tough markets and lack of economic growth.

"The markets that Adnams operates in have been challenging and this hasn’t been helped by external factors such as government policy or indeed the poor British weather.
"We have continued to support our customers throughout these difficult times by holding Adnams beer prices. 2013 will be the fifth consecutive year that we have held the price of Adnams beer (with the exception of duty) to our tied estate and free-trade customers. We welcomed the Chancellor’s decision to reduce beer duty by 2% and scrap the ‘beer duty escalator’, a policy that has been extremely harmful to beer and pubs.
"2012 was a difficult year for the economy, but we came through it well and achieved both beer volume and good profit growth. We did many of the right things to improve in 2012 and we believe that our long-term view will continue to hold us in good stead over the years to come."