Interim Trading Statement
Adnams PLC - Trading Statement
26 September 2024
Adnams plc - Interim Trading Statement
Adnams plc ("the Company"), the Suffolk-based premium beer, spirits and hospitality group, has published its results for the half-year to 30th June 2024.
The Company delivered 6.4% growth in sales over the period against the prior year to £32m. All sales channels improved on 2023, except its free trade business which saw a 2% fall in sales. Its off-trade business experienced significant growth - driven by the continued success of Ghost Ship 0.5 which saw revenues up 13.3% - whilst contract brewing and distilling delivered a record first half.
Cost of goods sold increased £2.9m, driven by growing volume and costs of raw materials, energy, and other price rises. It said payroll costs had been well controlled, with other overheads reduced by almost £1.9m as actions taken in the second half of 2023 continued to impact positively on the cost base. It added that these recurring savings would continue in the second half of the year and into 2025.
The Company said the combination of increased revenues and effective cost control had helped it to reduce operating losses by 29% to £1.8m compared to the first half of 2023.
Given the ongoing losses, the Board will not be recommending an interim dividend.
The Company also confirmed that, while the long-term funding review continues, it is currently focused on divesting non-core assets as part of a strategy to rebalance debt levels while preserving those assets critical to its future success, alongside new sales growth initiatives across all channels to build on current momentum in parts of the business.
Looking ahead, with improving consumer confidence, an improving cash position and a strong product line-up with further innovations coming to market, the Company is optimistic of utilising more of its brewing capacity, delivering improving sales growth and returning to profitability.
ENDS
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