Fuller's serves up improved full-year earnings

Pub operator and brewing company Fuller, Smith & Turner posted its financial results for the 53 weeks to 1 April on Friday, in what the board described as “another good year” with adjusted profit before tax rising 5% to £42.9m.

The London-listed company said adjusted earnings per share were also up 5% at 61.39p, while revenue rose 12% to £392m.

EBITDA improved 8% to £70.5m, and the board confirmed the total annual dividend was 5% higher year-on-year at 18.8p.

On a statutory basis, Fuller’s profit before tax was £39.9m, up marginally from £39.2m, while its net debt-to-EBITDA ratio stood at 2.9x, compared to 3.0x a year earlier.

Its operational performance saw a “strong” result from its managed pubs and hotels, with like-for-like sales growth of 3.7%, which the board said was driven by “good growth” in food and accommodation.

Like-for-like profit at tenanted inns was marginally down 1%, while EBITDA per pub was up 2%, and its total beer and cider volumes were off 2%, although profits at The Fuller’s Beer Company rose 5%.

“It has been another good year for Fuller's with a strong set of results for the company,” said chief executive Simon Emeny.

“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.

“We have purchased five new sites and completed 25 major refurbishments in the last 53 weeks.”

Emeny said the company was only nine weeks into the new financial year, but had seen a very strong start - albeit against its softest quarter last year - with like for like sales in managed pubs and hotels up 6.6%, like for like profits in tenanted inns up 5% and volumes in The Fuller's Beer Company rising 7%.

“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.

“Our managed pubs and hotels are in good shape and although there is a lot of work and a long way to go, we have a clear vision and solid strategy for both our tenanted inns and The Fuller's Beer Company.

“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.”