Shepherd Neame records ‘record revenues' despite ‘challenging economic conditions'

Pub operator and brewer Shepherd Neame has recorded record revenues in the year to 24 June 2023, despite "challenging economic conditions".

The business, which operates 296 pubs in Kent and the southeast, said consumer demand had been strong but inflationary pressures had increased costs during the period, which saw a reduction in pre-tax profits.

Revenue grew by 9.7% to £116.3m in the year, while pre-tax profits stood at £4.9m, compared to £7.4m the previous year. The year saw the business invest £17.2m, compared to £5.4m in the previous accounting period.

Like-for-like sales increased by 12.9% over the year, driven largely by increased drink spend.

Jonathan Neame, CEO of Shepherd Neame, said: "Demand has been strong all year with recent trade in our pubs encouraging. We have faced considerable inflationary challenges in the last year but these are now easing.

"We have an excellent pub estate which has been performing in line with the best in the sector. We have a loyal customer base, a high profile within the communities we serve, and we have an ambitious investment programme ahead.

"The turmoil of the last few years is now settling and the outlook is positive. We have much to look forward to. The balance sheet remains strong and the business has momentum in our pipeline of investment. We are confident we have the team and skills to deliver good returns for our shareholders over the long term."