Adnams plc - AGM
Statement
The Directors of Adnams plc ("the
Company"), the Suffolk-based premium beer, spirits and hospitality
group, held the Company's AGM on 27th June
2024.
The Company presented a detailed
review of its previously announced financial performance for the
year ending 31st December 2023, highlighting sales
growth of 3% to £66.3m (2022: £64.2m) - its third consecutive year
of post-pandemic growth - which it said demonstrated the resilience
of its business and brand in the face of the sector's multiple and
ongoing challenges. It said sales for the five-month period to end
of May 2024 had accelerated faster, outperforming the market in
beer volumes and sales.
The Company also reported a loss
before tax of £4m (2022: £2.3m) due to the aggregate impact of cost
increases including grain, glass, CO2, energy, wages and financing,
adding however that falling inflation had eased some costs in the
current year. It said this, together with increasing sales,
previously announced cost reduction measures and continued
disciplined cost management, would support its profit improvement
plan in the current year.
The Company also outlined a series
of initiatives designed to accelerate its position in a number of
key high-growth and profitable markets, including greater
distribution in the low and no alcohol segment where the business
has developed a leadership position with its Ghost Ship 0.5% pale
ale, and expanding its presence in the English whisky market where
its distilling expertise has helped it secure multiple
awards.
Jenny Hanlon, who replaces Andy Wood
as Chief Executive on 1st July, said: "The business has
come through some challenging market conditions in the past few
years thanks to a clear strategy, disciplined management, a
commitment to doing the right thing by our people and customers and
a lot of hard work by many.
"As conditions start to improve, we
need to capitalise on our unique strengths in order to drive
profitable and sustainable growth - a well-invested asset base
through our brewery, distribution centre and pubs, a fantastic team
of committed people with decades of brewing, distilling and
hospitality expertise, an award-winning line-up of products, and a
premium, heritage brand that is punching well above its
weight.
"Securing additional capital from a
successful funding process would help us unlock this potential,
enabling us to both reduce the company's level of debt and interest
costs, whilst enabling us to invest in this next phase of
growth.
"Our plan is focused on ensuring
Adnams fulfils its potential by becoming a profitable, brand-led,
sales-focused organisation that delights its customers with its
range of drinks and experiences, and supports it people,
communities and environment with its values-based
approach."
The Company has previously stated
that, as part of its funding process, its Board is currently
evaluating offers based on its agreed framework to determine which
route offers the best long-term value for the Company and its
shareholders, and expects to be in a position to revert to
shareholders for approval on its recommendations later in the
summer.
ENDS
For further information
contact info@adnams.co.uk