Adnams operating losses widen to £2.4m in H1

Adnams has revealed that sales in the first half of 2023 were level with last year’s total of £30m, as input costs continued to climb and contributed to operating losses widening to £2.4m.  

The pub operator attributed its performance to Q1’s subdued sales, as inflation peaked. However, lighter evenings and warmer weather improved sales in Q2. 

Nonetheless, cash flow remained consistent and in line with expectations. In March, the company reduced its debt position by £500k to £19.5m as part of its banking arrangements.

This comes as earlier in the year it undertook a cost reduction exercise that looked at all costs, which resulted in some job losses and changes to the ebay the company operates – particularly in its production operation. 

According to the group, its hotels and pubs have traded well in terms of room occupancy, although lower footfall in coastal locations had affected walk-in food and beverage sales.

Adnams also believes the unwinding of the staycation phenomenon that started during the pandemic has also been a factor in levels of footfall in its locations. 

The company noted many rural pubs remain closed in the early part of the week, just as recent reports showed that two pubs per day have closed for good in H1 of the year.

Consequently, sales volumes to supermarkets have become a greater proportion of the company’s output and its lead product, Ghost Ship 4.5%, and low alcohol sibling, Ghost Ship 0.5%, have benefitted from increased distribution.