The family brewer, which last year was reported to be facing financial pressures, reduced losses to £2.8m, following a £4.1m loss in 2023.
The company reported sales had increased 3% to £68.1m, which it said demonstrated the resilience of its business and brand amid “very challenging market conditions”.
During 2024, former Ei Group CEO Simon Townsend was appointed interim chair and Jenny Hanlon was appointed as CEO.
While revenue grew in some parts of the business on a like-for-like basis, Adnams said retail on the high street remained “challenging”.
Adjusted EBITDA improved to £1.2m (2023: £0.6m), though was “not representative of the returns the business is capable of realising”, according to Townsend.
Net bank debt was reduced to £15.3m (2023: £15.9m) through the divestment of non-core assets.
Alongside debt reduction, the company is implementing a commercial turnaround plan to improve revenue growth and profitability.
Cask declines
Cask ale volumes declined by 5.3% against a market decline of 7.6%. Off-Trade ale volumes suffered a small decline of 0.3% versus prior year, significantly ahead of the wider industry decline of 6.3%.
On-trade ale volume declines of 5.8% were worse than the market 3.7%, however performance improved during the course of the year to less than 1% behind the market in H2.
Low & no pale ale, Ghost Ship 0.5%, saw volume growth of 8.5% in 2024, with keg volume growing by 52% in 2024, and first quarter sales in 2025 up a further 50%.
Contract spirits volumes increased by 53% in 2024. Sales of Adnams Copperhouse Gin continued to show growth of 30% in the first 4 months of the new financial year.
Chairman Simon Townsend described how he was seeking to address the company’s financial performance and future prospects, with Adnams undergoing “significant change” in 2024.
“It is the board’s expectation that the benefits of the actions that have been taken will start to flow through into our financial performance in 2025 and beyond,” he said.
He said new CEO Jenny Hanlon immediately began to make a positive impact with pace and urgency facing up to the business challenges.
Adnams also appointed Robin Paul as interim funding advisor in July 2024, allowing the CEO to give her “undivided attention to the turnaround of the business”.
“The market in which we are operating continues to be immensely challenging, and our business is having to become unashamedly commercial if we expect to be able to compete effectively, grow our share and improve our underlying performance”, Townsend said.
Asset disposals
“It has been extremely reassuring to witness how our teams have been responding to the demands that are being placed upon them.”
On Adnams’ debt and disposals programme, Townsend added: “In simple terms, the company’s current level of indebtedness is unsustainable and we have therefore embarked upon a programme of asset disposals, the proceeds of which are being used to reduce the company’s borrowings.
“The asset disposal programme will continue until such time as the company’s earnings are sufficient to support its debt. At the same time we are driving our underlying business performance to enable sufficient free cash to be reinvested in the business and facilitate the reinstatement of dividends for shareholders.
“Profitability across the business has been extremely unpredictable, and while most parts of the business failed to meet our budget expectations during the year, our hotels, managed pubs and tenanted pubs performed satisfactorily under the circumstances.
“What has become clear in a relatively short period of time is the necessity for strategic clarity to be brought to the Adnams business - simplification where appropriate, doubling-down on our strongest attributes and a steadfast pursuit of sales growth, providing that attractive margins can be realised.”
Townsend paid tribute to head distiller John McCarthy who passed away after 20 years with Adnams.
In January 2025, Karen Hester, who retired from her role as chief operating officer in April 2024 after over 35 years with Adnams, died.
“Karen’s dedication and commitment to the company throughout her career was clear, and both she and John are much missed,” Townsend added.
- To read about Adnams’ Smidgin gin, click here.
