The boss of brewer and pub group Shepherd Neame has warned that additional will increase to the value of a pint are “doubtless” as surging prices proceed.
It got here because the Kent-based firm revealed a pointy rebound in gross sales and return to revenue following the impression of the pandemic.
Nonetheless, chief govt Jonathan Neame mentioned the group continues to be below strain resulting from rising prices in its provide chain.
He advised the PA information company that beer costs at the moment are round 10% larger year-on-year however may enhance additional.
“Additional rises in worth are more likely to be sincere,” he mentioned.
“I believe it’s vital to emphasize that worth inflation has not been as excessive as many different merchandise, and beer, significantly ales, are nonetheless extremely good worth.
“However our key considerations from a worth standpoint have been gasoline, the price and provide of CO2 and logistics as properly.”
On Wednesday, the 300-strong pub proprietor mentioned it noticed pre-tax income recuperate to £7.4 million for the 12 months to June, in contrast with a £16.4 million loss over the identical interval final 12 months.
Nonetheless, the group mentioned it doesn't count on to see a full recuperate in profitability to pre-pandemic ranges earlier than the 2024-25 monetary 12 months as a result of “ongoing power disaster”.
Shepherd Neame mentioned gross sales surged to £151.5 million for the previous 12 months, in comparison with £86.8 million a 12 months earlier.
The corporate added the present demand is “encouraging” and it's in “fine condition” heading into an vital Christmas interval.
It revealed that like-for-like gross sales over the 13 weeks to September 24 have been degree with buying and selling in 2020, and 9.4% forward of gross sales over the identical interval final 12 months.
In the meantime, whole beer volumes are up 5.6% once more pre-pandemic ranges, and up 1.2% year-on-year.
Mr Neame mentioned: “Shepherd Neame has rebounded properly from the challenges of the final two years – a testomony to the power of the enterprise mannequin and depth of expertise throughout the enterprise.”