23 November 2018 Half Year Results Press Release

(“Fuller’s”, “the Group” or “the Company”) 

Half year results for the 26 weeks ended 29 September 2018
Increased investment for the long term


Financial Highlights

Revenue up 6% to £222.1 million (2017/18: £209.3 million)
EBITDA  up 2% to £38.2 million (2017/18: £37.6 million)
Adjusted profit before tax  down 1% to £23.6 million (2017/18: £23.8 million)
Adjusted earnings per share  down 1% at 33.83p (2017/18: 34.22p)
Interim dividend up 3% to 7.80p (2017/18: 7.55p)
Proforma net debt to EBITDA  of 3.1 times (2017/18: 2.8 times).

Operational Indicators

Good performance from Managed Pubs and Hotels with like for like sales rising 4.1% (2017/18: 3.6%), total profits reflect high number of 92 closure weeks (2017/18: 29 weeks) due to investment in estate
Strong results from Tenanted Inns with like for like profit increasing 4% (2017/18: 3%), four pubs sold and a rise in average EBITDA per pub of 2% 
Total beer and cider volumes for The Fuller’s Beer Company rose marginally by 0.2% (2017/18: 1%), with revenue up 7% and operating profit up 9%.

Strategy Update

Acquired 10 excellent new sites – including six Bel & The Dragon country inns in the Home Counties and four City bars that fill geographical gaps in our estate
Front-loaded investment programme to maintain our premium position and excellent customer offer
Continued good progress in our Tenanted division, with 23 pubs on the new turnover agreement and four pubs sold as part of our strategic review
Further developments in The Fuller’s Beer Company to build a sustainable business that is fit for the future with full integration of the Dark Star Brewing operation, increased collaboration projects and Pilot Brewery coming on stream
Final stages of development of new ERP IT system, which went live post the period end.

Current Trading and Outlook

Managed Pubs and Hotels like for like sales up by 4.4% for 33 weeks 
Tenanted Inns like for like profit rose 2% for 33 weeks
Total beer and cider volumes increased 0.5% for 33 weeks.

Commenting on the results, Chief Executive Simon Emeny said: “I am pleased to be reporting another good performance. Each division is delivering growth and we continue to benefit from having a well-balanced business. Our excellent management team has further strengthened the business through a clear vision, a strong set of values and a commitment to growth through offering an outstanding customer experience and recruiting, developing and retaining the best people.

“While our revenues have continued to grow, we experienced a small drop in Group profits – however, this should be taken in context. We made a conscious decision to front-load our investment programme – impacting our profitability by £0.9 million. Although we would have seen profit increase had we not taken this action, we believe this is the right decision and ensures our estate is in the best possible position to benefit from the busy Christmas period and beyond. 

“In the 33 weeks since 1 April 2018, like for like sales in our Managed Pubs have risen 4.4%, while like for like profit in our Tenanted Inns is up 2% and total beer and cider volumes in The Fuller’s Beer Company are marginally up 0.5%.

“Since the period end, we have opened The Albert Arms in Esher, with six bedrooms, and added seven new bedrooms to The Fox & Goose, Hanger Lane, while a further 28 bedrooms are due to come on stream before the year end. We will also be opening The Signal Box at Euston Station in December.

“The second half of the year is also an exciting time for The Fuller’s Beer Company. We are installing our new canning line at Dark Star, will be brewing our second suite of Fuller’s & Friends collaboration beers and building on the early work of our Fuller’s First initiative to grow the share of our own beers in our Managed and Tenanted estates. We will also be optimising and driving business benefits from the new ERP system and launching an online B2B sales platform.

“Finally, it would be impossible to look forward to the second half of the year without reference to Brexit, which is due to happen on the penultimate day of our financial year. Facing uncertainty is never easy, but Fuller’s is an exceptionally well-established operation and benefits from a balanced business model which is designed to be flexible enough to adapt to changing trends and markets yet resilient enough to weather any storm. With a first-class team of people, a well-invested pub estate and a portfolio of outstanding brands, we are ready and able to face the future.” 


For further information, please contact: 

Fuller, Smith & Turner P.L.C.

Simon Emeny, Chief Executive 020 8996 2175
Georgina Wald, Corporate Communications Manager 020 8996 2198/07831 299801

Instinctif Partners
Justine Warren 020 7457 2020

Notes to Editors:

Fuller, Smith and Turner P.L.C. is an independent traditional family brewer founded in 1845 and is based at the historic Griffin Brewery in Chiswick, London, where brewing has taken place continuously since 1654. As of 23 November 2018, the Company runs 182 Tenanted pubs and 203 Managed Pubs and Hotels, with a focus on delicious fresh, home-cooked food, outstanding cask and craft ale, great wine and exceptional service. The Company also has 782 boutique bedrooms in its Managed estate. The Fuller’s pub estate stretches from Brighton to Birmingham and from Bristol to the Greenwich Peninsula, including 173 locations within the M25. In June 2018 Fuller’s acquired Bel & The Dragon, comprising six stunning country inns (included in the pub numbers above), and the Company also owns The Stable, a craft cider and gourmet pizza restaurant business, which has 17 sites in England and Wales.

The Fuller’s Beer Company brews a portfolio of premium beers including London Pride, Frontier Premium London Lager and a variety of cask and craft keg beers supported by a changing seasonal range. The Company owns Cornish Orchards – a craft cider maker producing a range of award-winning ciders and premium soft drinks – and Nectar Imports, a wholesale drinks business. In February 2018, Fuller’s also acquired Dark Star Brewing, a craft cask brewer based in Sussex.

Photography is available from the Fuller’s Press Office on 020 8996 2175 or by email at [email protected]

Copies of this statement, the Interim Report and results presentation will be available on the Company’s website, www.fullers.co.uk. The presentation will be available from 12 noon on 23 November 2018.

Click here to download the full PDF press release