Shepherd Neame’s ‘resilient’ FY sales offset brewing decline
Elsewhere, its tenanted estate continued to deliver a ‘robust’ performance, with tenanted like-for-like pub income up by 1%, and average pub income up by 1.2%
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Shepherd Neame has welcomed a “resilient” full-year performance, despite revenues dipping by 4.6% to £164.3m, down from £172.3m the prior year, and lower brewing volumes.
In the year ended 28 June 2025, underlying profit before tax fell by 3.7% to £7.6m. However, the brewer said it delivered “particularly strong” growth and positive momentum in H1, and from April onwards absorbed the impact of rising cost inflation, with EBITDA rising by 1.4% to £25.4m.
Retail like-for-like sales were ahead of the market, rising by 4.4% over the year. Like-for-like drink sales rose by 5.5% while like-for-like food sales rose by 3%, and accommodation sales rose by 2.3%.
Elsewhere, its tenanted estate continued to deliver a “robust” performance, with tenanted like-for-like pub income up by 1%, and average pub income up by 1.2%.
There was however a decline in beer volume, which fell by 9.2% against the prior year, while its own brewed volume was down by 11.6%. Divisional revenues in brewing and brands fell to £44.8m, down from £51.8m in FY24, while underlying operating profit in this division fell from £1.5m to £1m.
Over the year the brewer said it continued to invest in the business, with capital expenditure rising to £15m, including the acquisition of the freehold of one pub. It said it has been a year of “good strategic progress” with successful flagship investments and brand portfolio developments.
Jonathan Neame, CEO of Shepherd Neame, said: “Shepherd Neame is a strong business with fabulous pubs and well recognised brands. The company has delivered a solid performance against a challenging backdrop for the sector with consistent outperformance of the market in pub trading, whilst absorbing further cost inflation, in particular in labour and logistics.
“The sector remains remarkably resilient and attractive, and still presents many opportunities. We are focused on delivering a premium experience for our customers by driving inward investment across our pubs and further developing our own brands. These actions will position the business for future growth as and when cost headwinds subside.”
