Adnams FY losses widen to £1.2m despite rise in revenues

UK brewer, hotelier and wine merchant Adnams has reported its operating losses widened to £1.2m in FY22, against a loss of £800m the prior year, despite reporting that revenues rose by 11.9% to £64.2m.

It comes as Adnams said that its production operations were “hard hit by rising prices and supply chain disruption” while leased and tenanted estate “enjoyed an exceptional first quarter”.

Regarding retail, the group saw a reduction in online sales, with shops suffering from some product shortages. 

Jonathan Admans OBE, chairman, said: “The challenge for Adnams and the sector as a whole is to ensure that the increased costs of going out are met with an experience that the customer values and feels compelled to repeat even during a cost-of-living crisis.”

Andy Wood OBE, chief executive officer, said: “With an eye on the future we have made additional investment to strengthen our on-trade sales team, customer service hub and online ordering app to further build and support our sales across the UK in 2023.

“Our principal concern and that of the whole sector has been how much of this inflation can be passed directly through to the consumer without severely impacting demand, particularly in pubs the length and breadth of the country.”

Wood continued: “We remain fundamentally committed to the principle that a drink or a meal in a pub should  remain affordable for customers who are finding it hard to support local pubs at a time when the country and local communities need to come together.”