UK: Shepherd Neame FY profits hit by logistics deal costs
- FY net profits drop 21% to GBP5.5m (US$8.8m)
- Net sales in year to end of June up 1.4% to GBP134.9m
- Operating profits drop 10% to GBP11.5m
- Beer volumes down 1.3%
Shepherd Neame saw FY beer volumes drop
Shepherd Neame has posted a drop in full-year beer volumes but profits fell due to costs from a business reorganisation.
Net profits in the year to the end of June fell by 21% year-on-year to GBP5.5m (US$8.8m), the UK brewer and pub operator said today (26 September). Net sales were up by 1.4% to GBP134.9m over the same period a year earlier, while operating profits dropped by 10% to GBP11.5m.
The company blamed the profits drop on a GBP1.2m charge from a new logistics agreement and a board and business reorganisation.
In July, Shephard Neame announced plans to split its business into two trading divisions after signing a ten-year deal with logistics firm Kuehne + Nagel Drinkflow Logistics.
Beer volumes dipped by 1.3% but underlying volumes of Shepherd Neames' own beer, which includes Spitfire and Bishops Finger, were up slightly, by 0.9%.
Spitfire posted a a 2.7% volumes growth while Bishops Finger climbed by 1%. Ashahi Super Dry, which Shepherd Neame brews under licence in the UK alongside Samual Adams beers, was up by 9.4%. Samual Adams “grew strongly” but off a small base, Shepherd Neame said.
Current trading is stronger, with Shepherd Neame reporting an overall beer volume increase of 9.3% in the ten weeks to 7 September and an 11.9% increase in its own brands' volumes.
Chief executive Jonathan Neame said: “I am pleased to report a solid performance in difficult market conditions and a strong start to our new financial year. We are encouraged by the investments we have made in our brands and our pub portfolio and the exposure our assets give us to growth areas in the market.”
Shepherd Neame also grew sales last year but profits were down by 31% because of an impairment
To read the company's official statement, click here.
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