Punch Pubs revenues rise 1.9% to £168.3m in Q2

Punch Pubs has reported that total revenues rose by 1.9% to £168.3m in the 28-week period to 23 February 2025. 

The group attributed its growth to inflationary price increases and trade enhancing capex investment in its estate, as well as maturing profits from pubs converted from L&T to MP. 

Meanwhile, Punch Pubs’ completed 56 opportunistic acquisitions of single sites and small pub portfolios since 2022 and has optimised its cost base as it implemented the £5.1m cost saving plan identified in partnership with Deloitte.

All three of the group’s divisions – leased and tenanted, management partnership and laine – delivered a 5.46% like-for-like underlying EBITDA growth to £61.8m during the period when compared to the prior year. 

Underlying EBITDA for the year to 23 February 2025 reached £94.8m compared positively to the £76m of adjusted underlying EBITDA from the wider Punch Group in the year to August 2019, being the most recent financial year prior to the Covid pandemic. 

During the 28-week period, the group spent £12.5m on acquiring 20 pubs, as well as a further £17.3m on expansionary and maintenance capital – compared with £13.3m spent in the same period last year.

The £17.3m went towards making improvements in energy efficiency, increasing the percentage of pubs with SAP rating C or greater to 88% of pubs as of 23 February. According to Punch Pubs, it has a “clear” pathway to increase this to 100% by 31 December 2026.  

Based on the group’s initiatives, it expects its profitability to grow from the £94.8m of underlying EBITDA for the 12 months to 23 February 2025 to a pro forma run rate EBITDA of £111m. 

So far, Punch Pubs’ third quarter trading, which makes up the 8-week period to 20 April, has been strong with EBITDA 10% of the same period in 2024 – spelling a £1.4m rise.