Shepherd Neame Ltd - Post close trading update
Announcement provided by
Shepherd Neame Ltd · SHEP29/06/2022 07:00
Shepherd Neame
Post close trading update
Shepherd Neame,
Since the resumption of restriction-free trading, the Company has performed well with encouraging demand. Overall trading for the 52 weeks to 25 June 2022 has been in line with expectations.
Cash generation has been strong and net debt reduced to the lowest level since 2018. The Company has emerged from the pandemic strongly and is actively pursuing opportunities again to invest and grow.
Retail sales have been encouraging since our last update, with our coastal pubs and hotels, in particular, benefitting from their unique locations and great outside space. Our
Income levels in the tenanted estate have continued to rise versus 20211, although volumes are lower than pre-pandemic. Own beer volumes[3] in all channels for the 6 weeks to 25 June vs 20211 were up +2.0%. Own beer volumes3 in all channels for the 6 weeks to 25 June vs 20192 were down -3.0%.
The inflationary environment is challenging, with high costs in utility, energy related products and in our supply chain. We have long term fixed price contracts in place for certain items, and are taking mitigating action in other areas, through menu management and price increases to soften the impact. We are also choosing to invest more in areas such as property, marketing and people development for the long term strength of the Company.
Net debt (excluding IFRS 16 lease liabilities) has reduced significantly in the last year with strong cashflow, tight cost control and reduction in capital projects. Since its peak in December 2020, total indebtedness has reduced from
Jonathon Swaine joined the Company as at 27 June 2022, as Managing Director, Pubs and was appointed to the Board on 28 June 2022.
Jonathan Neame, CEO of Shepherd Neame said:
"Since COVID restrictions have been lifted, we have been encouraged by levels of demand and are enjoying strong performance across our business. In spite of external economic headwinds, we remain optimistic that we will continue to see similar levels of demand across the summer.
We are very pleased to welcome Jonathon Swaine to the team at a time when we are recommencing investment in our pub estate.
We are mindful of the many challenges ahead, but the business and our team have demonstrated extraordinary levels of resilience in the last two years, and we have no doubt we have the skills and platform to find opportunities to grow and develop in the future."
29th June 2022
Shepherd Neame |
Tel: 01795 532206 |
Jonathan Neame, Chief Executive |
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Mark Rider, Chief Financial Officer |
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Instinctif Partners |
Tel: 020 7457 2020 |
Matthew Smallwood |
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[1] The periods referenced to are the comparative weeks during the financial year 52 weeks to 26 June 2021.
[2] The periods referenced to are the comparative weeks during the financial year 52 weeks to 29 June 2019.
[3] Own beer volume: Sales volumes of all beer and Shepherd Neame cider brewed and packaged by the Company.
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