Young’s (LSE:YNGA) has reported a strong opening to its new financial year, with favourable weather and a packed summer sporting calendar helping to drive higher sales despite ongoing pressures across the hospitality sector.
The London and south-east-focused pub and hotel operator said total revenue increased by 9.4% during the 14 weeks to 31 March compared with the same period last year. On a like-for-like basis, which excludes the contribution from newly acquired venues, sales rose by 5.5%.
The company said trading was particularly strong over the late May bank holiday weekend, describing performance as “exceptional”, especially at pubs with outdoor gardens and riverside locations that benefited from the warm weather.
Young’s also pointed to increased customer demand generated by the FIFA World Cup, with England’s progress in the tournament encouraging higher footfall. Extended licensing hours for later evening matches allowed a number of venues to remain open into the night for supporters. The Wimbledon Championships also contributed to trading, with the group operating several pubs close to the tournament.
Chief executive Simon Dodd said the business had made a positive start to the financial year.
“This was supported by favourable weather, a busy summer of sport, with England’s success in the World Cup so far, a welcome boost and contributions from our expanded estate, as we integrate the Cubitt House pubs.”
Young’s recently completed the acquisition of eight gastropubs and pubs with rooms from Cubitt House London Pubs, further expanding its portfolio.
Commenting on the outlook, Dodd added:
“While the backdrop remains challenging, we are well-positioned and looking ahead to the rest of the year with confidence.”
The wider hospitality sector continues to face rising operating costs, with businesses citing increases in the National Living Wage, higher employer National Insurance contributions, additional regulatory costs and renewed pressure from higher energy prices.
The chief executive of rival pub operator Fuller’s recently criticised what he described as “government interference, additional taxes and regulations”, warning that rising costs “come with consequences” including pub closures and fewer employment opportunities.
More about Young’s
Young & Co.’s Brewery PLC is a premium pub, hotel and hospitality operator focused primarily on London and the south-east of England. The company owns and operates a portfolio of traditional pubs, gastropubs and boutique hotels, with a strategy centred on premium food, drink and accommodation offerings in high-quality locations. Recent acquisitions, including the Cubitt House estate, form part of Young’s long-term expansion strategy.
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