Fuller’s serves up soaring profits despite cost-of-living crisis
Pub group defies struggling economy to post rise in sales, driven by strong business in central London.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Pub group Fuller, Smith and Turner’s sales rose by a tenth last year, as the company defied high inflation to post a nearly 60% rise in profit.
The London-listed company said like-for-like sales rose 11% for the year ending March 30, while revenue rose 7% to £359.1 million.
Fuller’s said its central London locations brought in particularly strong trading, with pubs in “urban” locations enjoying a yearly rise in like-for-like sales of 16%.
It comes after a tricky period for pub operators, who emerged from pandemic-related closures to be met with sky-high inflation and energy costs through 2022 and 2023.
The cost-of-living crisis has also combined with rising labour costs, creating a deadly cocktail for some groups.
More than 500 pubs closed their doors for good last year, data from the British Beer & Pub Association said in January.
However, Fuller’s said today it believes these pressures have started to recede.
Simon Emeny, Fuller’s chief executive, said: “As of today, those inflationary pressures – especially in regard to food and energy – have reduced, which gives us additional confidence in the coming year.
“We have continued to build on the strong momentum of the last year with like-for-like sales in the first 10 weeks of the year rising by 4.4%.”
Fuller’s recently sold 37 pubs to Admiral Taverns for £18.3 million, and sold off its south London pub The Mad Hatter for £20 million, in a deal expected to complete next month.
At the same time, it has reinvested in a swathe of new locations, spending £27.2 million last year on new parts of its estate.
Mark Crouch, analyst at investment platform eToro, said: “Inflationary pressure is still causing a headache in this industry, leading to unavoidable price hikes to defend already watered down profit margins.
“The good news however is that some of those pressures, specifically in food and energy, have begun to relent.”
“London is a key market for Fuller’s and according to current data, tourist numbers are on the rise and set to reach pre-pandemic levels within the next couple of years.
“Couple this with a steady pick-up in more of us returning to the office and the signs are positive for Fuller’s.”