Pub group Fuller’s has said it expects a busy Christmas period and a boost from the World Cup but warns of challenges to the business from soaring energy costs, inflation, and rising interest rates.
The company reported revenue growth of 45 per cent to £168.9mn in the six months to the end of September, compared with the same period last year. Like-for-like sales were up 20 per cent, with increases of 67 per cent in London as people flocked back to pubs after pandemic restrictions were lifted.
“While we look forward to our first Christmas free of restrictions for three years, and the added bonus of a Fifa World Cup, we are trading in an increasingly challenging environment. Cost pressures from energy bills, wage and food inflation, and increasing interest rates continue to impact us and all businesses in the hospitality sector,” said chief executive Simon Emeny.
Pubs across the UK are hoping that the busy festive period and the World Cup will offset the high energy and other costs facing the industry. However, some in the industry have warned that the World Cup was unlikely to bring the same footfall to pubs that previous competitions have, because people have been hit hard by inflation.
Two-thirds of 300 pub goers surveyed by research agency KAM and brewer Heineken said they would watch their spending more carefully during the tournament.
Other pub chains have also warned of inflationary pressure, despite the first festive period free of restrictions in three years.
Last week, JD Wetherspoon revealed that although like-for-like sales in the 14 weeks to November 6 were 9.6 per cent higher than the same period last year, costs associated with labour, food and repairs were “substantially higher”.
Fuller’s also reported growth at its hotels business, with revenue per available room — the standard industry measure — growing by 17 per cent to £94.65 compared with the same period in 2020.
The company’s share price was flat on Thursday morning at 493p per share.