UK pub group Fullers' sales rise on strong demand, lower costs (updated)
13/06/2024 07:57
(Adds details on 2023 sales growth in paragraph 1, background
in paragraph 3, CEO quote in paragraph 4)
June 13 (Reuters) - British pub group Fuller, Smith &
Turner FSTA.L , on Thursday, posted higher sales for the first
10 weeks of the new fiscal year, aided by strong demand and
lower costs, but its growth rate slowed from last year.
The company, which operates premium pubs across the UK with
many in central London, reported a 4.4% rise in like-for-like
sales for the 10 weeks to June 8, slower than the 13.9% jump in
the comparable period a year ago, which had more bank holidays.
Pubs groups across the UK have had to grapple with high
operating costs and sticky wages that have eaten into profit
margins over the past year, although robust demand and the
easing of some costs have helped alleviate some of the
inflation-induced stress.
"As of today, those inflationary pressures, especially in
regard to food and energy, have reduced, which gives us
additional confidence in the coming year" and puts the company
in a strong position for growth, CEO Simon Emeny said in a
statement.
The company's profit surged more than 60% to 20.5 million
pounds ($26.2 million) in the year ended March 30, but still
fell short of matching pre-pandemic levels.
Analysts, on average, had forecast a profit of 20.3 million
pounds, according to a company-compiled consensus.
($1 = 0.7826 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Savio
D'Souza)
((Radhika.Anilkumar@thomsonreuters.com;))