Good weather helped boost interim sales at Shepherd Neame, the pubs and brewing group said on Wednesday, although inflationary pressures continued to weigh heavily.
The Kent-based business – which was founded in 1698 – said revenues in the 26 weeks to 24 December came in at £85.3m, an 8% improvement year-on-year.
Underlying retail sales jumped 11.9% and like-for-like tenanted income by 7.1%. Total beer volumes fell 0.9%, however.
Underlying operating profits rose nearly 6% to £6.3m, while pre-tax profits were ahead 2% at £5.5m.
The business, which operates 301 tenanted and managed pubs in Kent and the south east, said the long, hot summer and mild autumn had boosted its coastal sites, while pubs in London had benefited from the return to office working.
Christmas trading, however, while “generally good” had been impacted by fewer parties and train strikes.
Inflationary pressures also weighed heavily, with “huge” increases in food, energy, glass, brewing raw materials, packaging waste and logistics, primarily due to higher energy costs. Wages also rose, and were set to rise further in the second half.
Jonathan Neame, chief executive, said: “We have an excellent pub estate with considerable potential, well-established brands, a loyal customer base and high profile within the communities we serve.
“All these factors will stand us in good stead as the cost of living crisis and the economy returns to growth.”
Looking to the second half, Shepherd Neame said retail like-for-like sales in the 12 weeks to 18 March were ahead 12.8% on the same period a year previously, while tenanted pub income rose 4.9% in the nine weeks to 25 February.
Total beer volumes, however, fell 5.5% in the 12 weeks to 18 March.
The firm noted: “Demand is encouraging, but we expect further cost inflation in the second half and into the next financial year.”
As at 0900 GMT, shares in Shepherd Neame were off 1% at 600.5p.
