YOUNG & CO.’S BREWERY, P.L.C.
INTERIM RESULTS FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2024
STRONG PROFIT PERFORMANCE
SUPPORTED BY CITY PUBS INTEGRATION
| 2024 £m | 2023 £m | % Change | |
| Revenue | 250.0 | 196.5 | +27.2 |
| Adjusted operating profit1 | 38.1 | 31.0 | +22.9 |
| Adjusted EBITDA1 | 59.0 | 47.9 | +23.2 |
| Adjusted profit before tax1 | 28.3 | 28.0 | +1.1 |
| Profit before tax | 25.3 | 24.5 | +3.3 |
| Net debt | 255.8 | 110.8 | +130.9 |
| Net debt to EBITDA1 2 | 2.6x | 1.3x | -1.3x |
| Net debt (including leases) | 346.5 | 184.0 | +88.3 |
| Net debt to EBITDA (including leases)1 2 | 3.4x | 2.1x | -1.3x |
| Adjusted basic earnings per share1 | 36.72p | 36.08p | +1.8 |
| Basic earnings per share | 32.21p | 29.75p | +8.3 |
| Interim dividend per share3 | 11.53p | 10.88p | +6.0 |
| Net assets per share4 | £12.67 | £12.50 | +1.4 |
This interim period includes a full half year contribution from the City Pub Group acquisition.
1. Reference to an ‘adjusted’ item means that item has been adjusted to exclude non-underlying items.
2. Net debt to adjusted EBITDA has been calculated based on the last 12 months’ actual adjusted EBITDA of £98.2 million and £103.3 million including leases.
3. The interim dividend, in respect of the period ended 30 September 2024, is expected to be paid on 6 December 2024.
4. Net assets per share are the group’s net assets divided by the shares in issue at the period end.
HIGHLIGHTS
· Total revenue for the period up 27.2% to £250.0 million, and adjusted EBITDA up 23.2% to £59.0 million with managed house EBITDA for the period up 25.1% to £73.8 million.
· Like-for-like revenue growth of 4.4% (5.2% excluding Easter impact) set against the challenging early spring and summer weather, supported by an excellent EURO 24.
· Adjusted operating profit up £7.1 million to £38.1 million, driven by a sector leading margin of 15.2%, despite continued National Living Wage increases of almost 10%, utility costs and quarter one dual running costs from the City Pub Group acquisition.
· £21.7 million of investment in the period, £19.4 million invested in our existing Young’s estate, with a further £2.3 million invested in the City Pub Group estate. The value of our freehold estate as at 1 April 2024 was £1.0 billion.
· Healthy cash generation alongside the planned selective disposal of six pubs has reduced the year end net debt position by £12.0 million to £255.8 million (£346.5 million including leases), with net debt to EBITDA at 2.6 times (3.4 times including leases), in line with our target post the City Pub Group acquisition.
· Interim dividend of 11.53 pence per share, an increase of 6.0%, reflecting our progressive dividend policy.
· Like-for-like managed house revenue for the last eight weeks was ahead of last year by 6.0%; and accelerating to 9.2% in the last three weeks, demonstrating the benefit of the Autumn Internationals.
· Successful integration of City Pub Group into the Young’s estate, head office synergies have already been realised, and further food and drink margin benefits progressing in line with the acquisition plan.
Simon Dodd, Chief Executive of Young’s, commented:
“We’ve achieved a huge amount as a business in the last six months, reflected in another strong set of results. The City Pub Group integration has gone well, with the pub teams welcomed into the Young’s family and all operational control brought together under one leadership team. Our teams have done a fantastic job, and I’m looking forward to seeing our pubs thrive together“
“I am very pleased with our performance and the progress we have made during the period, which has been achieved despite some challenges. The weather was frustrating yet again, with a wet spring and limited periods of prolonged sunshine during the summer months, however EURO24 and England’s successful run to the final, provided a welcome boost to drink sales with our pubs performing exceptionally well on match days“
“The new Government’s budget will result in significant increased costs for our industry in the near term through rises in National Minimum Wage and Employer’s NI payments. We expect the cost impact to be approximately £11 million on an annualised basis from next April. We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers. We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses“
“Given the quality of our estate and on-going strategy, we remain confident in our ability to deliver long-term growth, including achieving the planned synergies from the City Pub Group acquisition.“