Fuller’s results: food up, beer down

08-Jun-2017 - Last updated on 09-Jun-2017 at 08:13 GMT

Business boost: Fuller's reveals rise in profits thanks to food

London pub group and brewer Fuller’s profits rose by 5% to £42.9m last year, driven mainly by food and accommodation.

For the 53 weeks to 1 April 2017, Fuller’s like-for-like sales rose by 3.7%, while beer and cider volumes dropped 2%. However, Fuller’s Beer Company’s operating profits increased by 5%.

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Focus will remain on food and accommodation over the next 12 months, as the group outlined a significant investment of £22m in its existing inns estate, as well as the addition of 71 new rooms.

Stable arm ownership up to 76%

Four new restaurants were opened during the period under its Stable arm, of which the group acquired a further 25% share – taking its ownership to 76%.

Fuller’s figures for the 53 weeks to 1 April 2017 at a glance:

+5% – adjusted profit before tax
+12% – revenue
+85 – Earnings before interest, tax, depreciation and amortization
+5% – total annual dividends
-2% – total beer and cider volumes
+5% – Fuller’s Beer Company’s operating profits

For the first nine weeks of Fuller’s current financial year, beer and cider volumes rose by 7%, while its Tenanted Inns business saw profits up 5%.

Chief executive Simon Emeny said: “It has been another good year for Fuller’s with a strong set of results for the company.

“Food and accommodation have driven like-for-like sales growth in our managed pubs and hotels, and the targeted investments we have made in both new sites and redeveloping our existing estate have generated excellent returns.”

The chief executive claimed that, although only a short way into the new financial year, it had been a strong start with many positives.

Significant impact

He added: “There are a number of headwinds that will have a significant financial impact on both Fuller’s and the industry as a whole, but we face the future in a strong position.”

The company’s managed pubs and hotels were in good shape, but work remained to ensure strong growth into the future, he said.

“In short, while we are cautious and realistic about the future, we are well-placed to continue to delight our customers, recruit and develop the best team members and reward our shareholders.”