UK's Young & Co's Brewery bets on Euro, Olympics to boost summer sales
19/06/2024 08:24
June 19 (Reuters) - British pub group Young & Co's
Brewery YNGa.L on Wednesday posted higher sales in the first
nine weeks of the fiscal year and said it was positive the feast
of summer sporting events like the Euro 2024 and Olympics will
drive demand.
WHY IT IS IMPORTANT
British pub groups, which have been grappling with high
costs and sticky wages amid a challenging macroeconomic
landscape, are gearing for the upcoming summer season which
includes sporting events such as the Euro, Wimbledon and the
Olympics, as well as the Autumn rugby internationals that are
expected to boost footfall.
BY THE NUMBERS
Total sales of Young & Co's Brewery for the nine weeks from
April 1 were up 24.4% from a year ago, while like-for-like sales
rose 2.4%.
The pub group's adjusted profit before tax for the fiscal
year ended on April 1 rose 9.3% to 49.4 million pounds ($63
million).
The group expects its net debt-to-adjusted core profit ratio
to return to historical levels by the end of fiscal year 2025
after it recognises a full year of additional core profit from
the recent acquisition of City Pub Group.
KEY QUOTE
"Looking ahead, we face some challenges, but there is plenty
for us to be excited about this year," CEO Simon Dodd said in a
statement, adding that challenges on inflation, consumer
uncertainty and increases in the national living wage persisted.
MARKET REACTION
"We see Young's as the pub industry gold standard, but with
leadership credentials not reflected in the modest current
valuation," analysts at Stifel said in a note on Wednesday.
($1 = 0.7857 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by
Mrigank Dhaniwala)
((Radhika.Anilkumar@thomsonreuters.com;))