Shepherd Neame (AQSE:SHEP), the oldest brewer in Britain, upped its dividend 8% as it reported record annual sales but profit fell as it bemoaned "significant inflationary pressure", resulting in rising costs.
The owner and operator of 296 pubs in Kent, London and the Southeast made a £4.5 million sizeable impairment to the value of its estate as the rise in interest rates led to an increased cost of capital.
This meant that although revenue for the 52 weeks to 24 June 2023 grew 9.7% to £166.3 million (a record in its 300-plus years of existence) and underlying profit before tax (PBT) grew by 4% to £7.6 million, statutory PBT fell by a third to £4.9 million.
Like-for-like drink sales in pubs were up 22% and food sales 3.1%.
"Consumer demand was strong throughout the year but significant inflationary pressure has increased costs across the business," the company said, and although most areas of inflation are easing, food inflation remains high.
A full-year dividend of 20p was up from 18.50p a year ago.