Cornwall’s St Austell Brewery has reported record sales despite bosses citing inflated operating costs, labour shortages and reduced visitor numbers to the South West.
The independent brewer and pub company, which operates an estate of around 180 venues across the region, said annual turnover had grown by a third to £209.2m – up 10% on pre-pandemic levels.
The company, known for its ale brands Tribute and Proper Job, also reported an increased underlying operating profit of £11.4m for 2022.
Bosses said the firm’s managed pubs had seen a “very strong” first half of its current financial year. In the 23 weeks to June 10, like-for-like (LFL) sales were up 12% with growth “accelerating” in the last month of that period, during which LFL sales rose by a fifth.
Last year St Austell Brewery added to its portfolio with a series of acquisitions of pubs in Devon and Cornwall, as it looks to expand its estate to more than 200. It also took a minor stake in fellow Cornish brewer Harbour Brewing.
Chief executive Kevin Georgel reiterated calls for the government to support the hospitality industry, as it battles economic headwinds, including “extraordinary increases” in energy costs.
Earlier this year the Treasury extended financial support to firms with soaring energy bills for an extra year, but significantly slashed the amount of money available. The current scheme is set to cost the Government £5.5bn over the current financial year - compared to £18bn spent over just six months on the previous relief plan.
Mr Georgel said a withdrawal of support and an increase in taxation and regulation was adding to the “escalating” cost of doing business, which he said “disincentivises” investment.
“Having successfully completed our refinancing in March, we continue to have significant headroom in our funding”, Mr Georgel said, adding: “This will allow us to continue investing in our business and pursuing attractive acquisition opportunities. However, we urge the government to work harder to create conditions which incentivise investment and support businesses that are committed to growth.”
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