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(Alliance News) - Young & Co's Brewery PLC on Thursday reported a dip in annual profit, saying it was hurt by rising cost inflation and a higher National Living Wage in the UK.
The London-based pub chain posted pretax profit from continuing operations of GBP36.2 million in the 53 weeks that ended April 3, down 16% from GBP42.1 million the year before.
Young's said the decline was largely due to a "small" movement in its property revaluation. It also recorded a 21% increase in operating costs before adjusting items to GBP316.5 million from GBP262.6 million the year prior.
"We have not been immune to the increasing cost of food, consumables, and the rise in the National Living Wage; however, our foresight to fix utility rates until March 2024 has minimised the full impact of higher energy prices," Young's said.
Revenue climbed 19% to GBP368.9 million in the recent year from GBP309.0 million in financial 2022. Young's said this performance was underpinned by its managed pub like-for-like revenue, which was up 13% year-on-year.
"The positive trading momentum of the first half continued throughout the period, with unwavering customer demand for our outstanding pubs and the unrivalled Young's experience. The negative impact of the rail strikes did not stand in the way of us achieving numerous record weeks, as sales were boosted by glorious summer sunshine and the first ever winter FIFA World Cup," said Chief Executive Simon Dodd.
"It's been a good start to the new financial year with sunny weather over Easter and the early May bank holiday. There is also huge excitement for the Rugby World Cup later this year. We are confident our premium, well-invested predominantly freehold pub estate, alongside our healthy balance sheet, will continue to deliver superior returns for our shareholders."
Young's said its trading since the April 3 year-end has been "positive" with like-for-like sales up 4.8% despite an "unseasonably cooler and wetter" start to spring.
The company declared a final dividend of 10.26 pence, bringing its total dividend for the year to 20.25p. This represents an increase of 9.1% against the year prior.
Young's shares were up 0.4% at 1,170.00 pence on Thursday in London.
By Heather Rydings, Alliance News senior economics reporter
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