The company, which operates 286 pubs in Kent and the South East, said that like-for-like sales in its pubs have remained strong throughout the year, and it has continued to outperform the market.
Consumer demand has remained resilient, particularly in London as more workers come back to offices. The company also revealed it had highs in the summer months, over Christmas and a strong final quarter in its pub business from Easter 2025.
Shepherd Neame revealed its results were also impacted by a 53 week trading period for last year compared to 52 weeks this financial year.
Like-for-like sales in its retail estate increased by 4.4% with revenue at £82.6m (2024: £81.1m), up +1.9% while tenanted like-for-like pub income was up by 1%. and revenue hit £35.6m (2024: £34.9m), up +2.3%.
However, beer volumes saw a decline of 9.2% driven by off-trade sales, but the company said it was modernising its portfolio to address the“weakness” in traditional ale categories, and to take advantage of new trends.
The result was revenue in its brewing and brands area was down 13.5% to £44.8m (2024: £51.8m), while underlying operating profit dropped to £1m (2024: £1.5m).
Cost inflation
Overall, underlying profits for the year ending 28 June 2025 were slightly short of last year’s figures, reflecting exceptional levels of cost inflation arising in April 2025, and the fact that it had one fewer trading week than the previous year.
Overall revenue for the year was down 4.6% at £164.3m while statutory profit before tax was down 7.9% at £6.3m.
The company said it would continue to face inflationary cost headwinds in the year ahead, as the sector meets the challenge of the increased cost of labour, and meet the specific challenge of its higher costs of distribution.
It also said that in the next year it would absorb these increases through a combination of price increases and efficiencies.
Whilst this inflation will continue to impact in the coming year, the company expects it to moderate into 2027.
Strong business
The company did raise some concern over whether the Government’s forthcoming budget is creating consumer uncertainty, but highlighted the recent fall in short-term interest rates should help confidence.
Jonathan Neame, CEO of Shepherd Neame, said:
“Shepherd Neame is a strong business with fabulous pubs and well recognised brands. The company has delivered a solid performance against a challenging backdrop for the sector with consistent outperformance of the market in pub trading, whilst absorbing further cost inflation, in particular in labour and logistics.
He added: “The sector remains remarkably resilient and attractive, and still presents many opportunities. We are focused on delivering a premium experience for our customers by driving inward investment across our pubs and further developing our own brands. These actions will position the business for future growth as and when cost headwinds subside.”
