Shepherd Neame reports record revenes of £172.3m despite selling less beer

The company, which operates pubs across the south of England, said it has seen a surge in drink sales as the return of more office workers boosts trade

Pub and brewing company Shepherd Neame has reported record revenues and a surge in profits, despite selling less beer over the past year

The Kent-based firm revealed that it had moved its beer business further away from retailers like supermarkets over the year, leading to a significant drop in sales volumes. However, the company stated that its strategy focusing on pubs has been promising as pub-drinking habits returned to normal after the pandemic and cost-of-living pressures eased.

The company, which employs around 1,800 people, announced a 3.6% growth in revenues to a record £172.3m for the year ending June 29, compared to the previous year. This was largely driven by strong performances from venues in London and its tenanted pub business.

Shepherd Neame, which operated 291 pubs at the end of the year, saw a 4.9% increase in total like-for-like sales across its pub estate, fuelled by a 7.2% rise in drink sales. Pubs within the M25 reported a 14.5% surge in like-for-like sales as the return of more office workers boosted sales.

Meanwhile, the Spitfire and Bishops Finger brewer reported an 11.8% decrease in total beer volumes compared to the previous year, resulting in a 7.4% drop in revenues from its brewing and brands division. Despite this, the company said profits from its beer business grew as it shifted from off-trade (retailers including supermarkets) to on-trade customers (hospitality operators such as pubs).

Shepherd Neame announced a notable 38.1% jump in group pre-tax profits, reaching a sturdy £6.8m for the year. Jonathan Neame, chief executive of the brewery, said: "We have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business."

"We have a strong pipeline of pub developments and new opportunities in our heartland on-trade. We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face."