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Fuller’s Financial Results

Financial Highlights

  • Adjusted profit before tax1 up 5% to £42.9 million (2016: £40.9 million)
  • Adjusted earnings per share2 up 5% to 61.39p (2016: 58.35p)
  • Revenue up 12% to £392.0 million (2016: £350.5 million)
  • EBITDA3 up 8% to £70.5 million (2016: £65.0 million)
  • Total annual dividend up 5% to 18.80p (2016: 17.90p)
  • Statutory profit before tax of £39.9 million (2016: £39.2 million)
  • Net debt to EBITDA4 2.9 times (2016: 3.0 times)

Operational Indicators

  • Strong performance from Managed Pubs and Hotels with like for like sales5 growth of 3.7%, driven by good growth in food and accommodation
  • Tenanted Inns like for like profits marginally down 1%, EBITDA per pub up 2%
  • Total beer and cider volumes down 2%, but operating profits in The Fuller’s Beer Company rose 5%.

Strategy Update

  • Invested £22 million in our existing Inns estate, broadening the appeal of our pubs
  • Acquired five new pubs
  • Added an additional 71 new bedrooms
  • Opened four new restaurants for The Stable and acquired a further 25% share, taking ownership to 76%
  • Grew sales of our craft beer range and launched London Pride Unfiltered
  • Added further warehousing and capacity at Cornish Orchards and Nectar
  • Filled 66% of vacancies with internal promotions through successful ongoing strategy of developing our people.

Current Trading and Outlook

  • Managed Pubs and Hotels like for like sales up by 6.6% in first nine weeks
  • Tenanted Inns like for like profits for first nine weeks up 5%
  • Total beer and cider volumes up 7% in first nine weeks
  • Frontier crowned Champion Draught Lager at the 2017 International Beer & Cider Awards
  • Four Tenants on new agreement based on turnover rent
  • Impending cost pressures including business rates, Apprenticeship Levy, rising National Living Wage and recruitment pressures due to the UK’s departure from the European Union
  • Well-positioned to face the future, with a clear, consistent strategy and longterm business model, underpinned by a strong balance sheet and exceptional assets.

53 Week Reporting Period

The results are for the 53 weeks ended 1 April 2017, with the comparative statutory period being the 52 weeks ended 26 March 2016. All comparisons are based on our statutory reporting period, unless otherwise stated.

Commenting on the results, Chief Executive Simon Emeny said: “It has been another good year for Fuller’s with a strong set of results for the Company. Food and accommodation have driven like for like sales growth in our Managed Pubs and Hotels and the targeted investments we have made in both new sites and redeveloping our existing estate have generated excellent returns. We have purchased five new sites and completed 25 major refurbishments in the last 53 weeks. 3

“We are only nine weeks in to the new financial year but we have had a very strong start, albeit against our softest quarter last year, with like for like sales in our Managed Pubs and Hotels up 6.6%, like for like profits in our Tenanted Inns up 5% and volumes in The Fuller’s Beer Company rising 7%.

“There are a number of headwinds that will have a significant financial impact on both Fuller’s and the industry as a whole, but we face the future in a strong position. Our Managed Pubs and Hotels are in good shape and although there is a lot of work and a long way to go, we have a clear vision and solid strategy for both our Tenanted Inns and The Fuller’s Beer Company.

“In short, while we are cautious and realistic about the future, we are well-placed to continue to delight our customers, recruit and develop the best team members and reward our shareholders.”