14th Nov 2019 09:50
(Alliance News) - Young & Co's Brewery PLC said Thursday it is "very pleased" with interim performance despite a fall in profit.
Revenue for the half-year to September 30 climbed 7.3% to GBP168.2 million, with like-for-like sales growth 1.1%.
A year ago, Young's reported an "excellent" set of interim results, which were boosted by the hot summer of 2018 as well as a strong performance by England in the football World Cup.
Wandsworth, London-based Young's pretax profit fell 6.4% to GBP24.7 million, which it blamed on higher interest charges, while the adjusted figure was 3.4% higher at GBP27.0 million.
The firm has boosted its interim dividend by 6.0% to 10.57 pence per share, the 23rd year in a row Young's has increased the half-year payout.
"I am very pleased with the performance of our business during the first half of the year. In what was a challenging period up against tough comparatives, we continued to grow profit, make acquisitions, invest organically and increase the dividend: a reflection of the consistent execution of our strategy and the hard work of our teams throughout those six months," said Chief Executive Patrick Dardis.
Dardis said the company had a difficult start to its financial year due to poor and unpredictable UK weather, but things improved in August and September, which helped Young's like-for-like revenue growth.
Managed Houses revenue was up 7.8%, with like-for-like sales rising by 1.1%. Drink sales were up 6.4%, or 0.7% like-for-like, with last year's hot summer "always going to pose a challenge".
Last year, summer drinks such as Pimm's and rose wine were the top sellers, but this year red wine was the strongest wine and Guinness had "outstanding growth".
Food sales outperformed, Young's continued, delivering 1.9% like-for-like sales growth and 11% overall growth.
Looking ahead, Dardis said: "Although the upcoming general election prolongs the unpredictability of the political environment, it does not change our approach or confidence in our winning strategy of running high-quality, well-invested premium pubs.
"Our expectations for the full-year remain unchanged and we remain confident in our ability to deliver long-term growth and sustainable superior investor returns."
Sales in the first 13 weeks of the second half have been "strong", Young's said, rising 12% year-on-year and 5.1% like-for-like, in part helped by the rugby World Cup. However, a lack of autumn internationals as a result will have an impact.
Shares were 1.6% higher on Thursday morning in London at 1,577.00p each.
By George Collard; [email protected]
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