Fuller's profits up 4% with beer sales healthy

l Fuller's chairman Michael Turner (left) with finance director James Douglas

June 7, 2008: London brewer and pub company Fuller's has reported adjusted profits up 4% to £23 million for the year to March 29, 2008.

Own beer volumes rose by 4% and beer company profits were up 1%.

“Our adjusted earnings per share have risen by 6% to 29.15p and we have achieved a 3.6% increase in invested like-for-like sales in our managed pubs and hotels, one of the highest increases in the industry," said chairman Michael Turner, commenting on the results.

“Our consistent focus on quality and commitment to outstanding cask conditioned ales, delicious food, great wines and exemplary service, continues to provide the best foundations for a stable business. We operate in the premium end of the market and believe this is the only place to be.

“We have a long-term strategy, strong balance sheet, excellent cashflow generation and an experienced management team, and are well placed to meet the challenges ahead.”

Beer volume growth was helped by a 7% increase in the off-trade and 21% in exports, breaking into new markets such as Russia, Japan and China. Foreign beer volumes, however, have fallen as a result of the weather and the smoking ban, and are down by 4% against an on-trade lager market down 7%.

Fuller's report that cask ale has grown its share of the draught beer market for the first time in a decade. In addition, premium cask ale and premium bottled ale are both in growth.

"London Pride continues to lead the premium ale market and has again grown its market share in all sectors," said Mr Turner. "Our sponsorships of the English Golf Union and the London Marathon are now in their second year and are providing a great platform for growing sales and raising brand awareness.

"We ran television, cinema and poster advertising campaigns during the year, and our sponsorship of the World Match Play golf tournament at Wentworth resulted in substantial coverage on terrestrial television."

Organic Honey Dew is showing excellent growth and other beers have picked up awards, with London Porter, Discovery, London Pride and ESB all featuring in the International Beer Challenge 2007 list of the world’s 50 best beers.

Fuller's is marketing for sale the former Gales brewery site in Horndean, Hampshire.