Adnams keeps its spirits up as operating profit increases by 7.3%
Suffolk brewer, distiller and retailer Adnams increased its operating profit by 7.3% to £4.1m after a strong year of spirit sales, which were up 39% from the previous year.
Reporting its annual results for the year to 31 December 2015, Adnams saw a slight decrease in overall sales, down 0.5% to £65.7m. At the half year the firm reported turnover was 3% behind 2014, but an improved second half of the year narrowed the gap.
Despite spirit sales more than trebling, beer volumes remained level with 2014.
Jonathan Adnams (pictured), chairman, said: "I am pleased to report the company made good progress in 2015, the economic mood was reasonably buoyant and a cut in duty rate for the third year running was a welcome announcement in the budget.
"Ghost Ship has remained in strong growth, as have our newer range of kegged, canned and bottled beers which fit well into the vibrant and growing UK craft beer market."
He added: "Our investment into the brewery and distillery continues, and this development will ensure we have the flexibility and capacity to meet the demands of the changing beer market. Our spirits have become an integral part of our business, and we're delighted to have trebled our capacity with the addition of two new stills."
The company said it is continuing to invest to meet the demands of a changing beer market and expects to have spent around £7m by the end of 2017.
Extensions and improvements will include new bottom fermentation, beer conditioning and filtration capacity, enhanced cooling equipment and an automated kegging line.
