Southwest Brewer and pub company St Austell Brewery has reported ‘strong’ financial growth in the 52-week period to 31st December 2023. Despite challenging trading conditions for the hospitality industry, the company grew its underlying operating profit by 15% (£13.2m) and achieved another year of record turnover (£229.5m).
Will Michelmore, Non-Executive Chairman, St Austell Brewery, said:
“I am pleased to report that St Austell Brewery has once again achieved record turnover, but importantly, this increase in sales has also been converted into improved operating profit.
“We are very proud of these results given the challenges that the company and wider sector continues to face. Costs have increased significantly during this financial year – particularly on food and labour – while the cost-of-living crisis has continued to reduce levels of disposable income and change consumer behaviours.
“Despite the challenging trading environment, demand for our beers and the offer in our pubs has remained strong. We continue to be optimistic about our long-term prospects and remain confident that we have the leadership and focused strategy that will ensure the company’s continued growth and future success.”
Kevin Georgel, Chief Executive, St Austell Brewery, said:
“2023 was a year in which we made significant progress against our ambition to release the full potential of the business. We have continued to invest in our people and our high-quality pub estate, whilst future-proofing our beer brands and drinks portfolio. As a result of this continued investment, and the contribution of our dedicated and talented teams, I am confident that we are delivering great experiences for our customers all year round, and this is generating strong profit growth.
“Throughout the year, inflation reduced from the peak of 2022, however cost challenges in our sector continued. Considering these sustained headwinds, we are pleased to report a 15% increase in profitability, in addition to delivering record revenues for a second consecutive year.
“These results are testament to our all of our teams as well as our tenanted business partners. I would like to take this opportunity to thank them all for their continued hard work and support.
“With the cost of living continuing to impact people across the country, we remain committed to delivering excellent value. We are, first and foremost, an experiential business and it is our ambition to exceed the expectations of every guest, whether they’re visiting one of our pubs or drinking one of our beers.
“Our financial performance compares strongly with the market, and we remain a profitable, strongly cash-generative business with a clear strategic direction. We are focused on continued growth, harnessing the momentum we’ve built and diversifying our offer – where appropriate – to ensure that the business evolves positively and remains fit for the future.”
