- The London-based firm’s sales rose by 5.9% in the 41 weeks ending 11 January
Fuller’s said it was optimistic about hitting annual forecasts after enjoying healthy trade over the festive season.
The pub chain revealed its like-for-like sales increased by 10.2 per cent over the five-week Christmas and New Year period thanks to a ‘consistent performance’ across its estate.
Consequently, the London-based firm’s sales rose by 5.9 per cent in the 41 weeks ending 11 January, outperforming the wider market.
‘We have delivered great results throughout 2024, and this has been enhanced with a really strong Christmas,’ said Simon Emeny, chief executive of Fuller’s, adding that the company was ‘confident of meeting’ full-year market expectations.
Fuller’s robust results come at a challenging time for a hospitality sector struggling with inflationary pressures, weak consumer sentiment, and mass venue closures.
A total of 412 pubs across England and Wales were demolished or converted to another use last year, according to commercial real estate business Altus Group.
Drink up: Fuller’s revealed its like-for-like sales increased by 10.2 per cent over the five-week Christmas and New Year period thanks to a ‘consistent performance’ across its estate
It was the highest number since 2021, when stringent Covid-related restrictions on indoor venues and inbound tourism led to a massive loss of trade for pubs, bars and restaurants, especially in London.
The figures also meant the number of pubs had declined to below 39,000 in England and Wales for the first time.
Hospitality companies face further challenges in the coming year owing to tax and wage hikes announced by Chancellor Rachel Reeves in her October Budget.
From April, employers’ National Insurance contributions will rise from 13.8 per cent on annual staff salaries above £9,100 to 15 per cent on wages exceeding £5,000.
Alongside this, the National Living Wage will increase by 6.7 per cent to £12.21 per hour, while retailers and pubs will see their business rates relief cut from 75 per cent to 40 per cent up to a cap of £110,000 per firm.
JD Wetherspoon warned its costs would jump by about £60million in 2025 due to the Budget, while Young’s said it was preparing for an £11million impact.
Fuller’s has said the combination of NI and minimum wage changes would add a further £8million to their costs in 2025.
Despite this, Emeny stated Fuller’s was ‘taking appropriate actions to manage the impact of these market challenges.’
Mark Crouch, a market analyst at eToro, remarked: ‘Investors were left feeling punch drunk after the Labour budget, which, from an outsider looking in, seemed more like a growth stopper rather than a growth stimulator.’
He added: ‘The hospitality sector remains a challenging arena as companies are facing multiple headwinds from rising costs to falling footfall, a trend that all concerned will hope is temporary.’
Fuller, Smith & Turner shares were 1.05 per cent up at 576p on Wednesday morning but have still fallen by around 15 per cent over the past year.
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