Young’s toasts bumper Christmas booze gross sales amid Budget ‘headwinds’

Young’s & Co chief executive Simon Dodd said he was ‘mindful of the headwinds’ facing consumers after the group toasted record sales over the festive period. 

Dodd told shareholders on Thursday that the hospitality sector would face ‘wider issues’ amid the increase in employer national insurance contributions and the national living wage from April. 

In November, Dodd told This is Money the hospitality sector urgently required substantial business rates reform to help much of the industry ‘balance the books’. 

The group previously revealed that measures announced in the Autumn Budget would cost it an extra £11million. 

But Young’s revealed it enjoyed double-digit sales growth during the Christmas period. 

Headwinds: Young’s & Co chief executive Simon Dodd said he was ‘mindful of the headwinds’ facing consumers

The Wandsworth-based pub and rooms operator said it traded ‘exceptionally well’ during the 15 weeks to 13 January.

Like for like sales rose 11.6 per cent, while sales over Christmas Eve, Christmas Day and Boxing Day were 10.5 per cent higher. 

Total managed revenue for the last 15 weeks ending 13 January increased by 26.1 per cent and 7.9 per cent on a like-for-like basis. 

Dodd said: ‘We are very pleased with our excellent trading over the festive period, which reflects the rigorous planning, commitment and enthusiasm of our teams across the business.

‘We continued to break sales records across the period, delivering some of the highest daily sales in Young’s history. 

‘Our recent pub investments performed exceptionally well across the period.’

Young’s share price rose 4.33 per cent or 36.00p to 868.00p, having fallen over 20 per cent in the last year. 

Dodd added: ‘Looking ahead, whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter from the increase in both National Insurance contributions and National Living Wage, our business is in great shape, and we continue to be optimistic about the year ahead.’ 

In November, Dodd told This is Money price hikes would likely come in at ‘around 2 to 3 per cent’ in the next financial year, as a result of measures announced in the Autumn Budget. 

Young’s revenues surged 27.2 per cent to £250million in the 26 weeks to 30 September, driving operating profit from £7.1million to £38.1million. 

The latest solid numbers from Young’s on Thursday followed a 10.2 per cent increase in sales from rival London pub company Fuller’s, and a 10.4 per cent rise from pub and restaurant operator Mitchells & Butlers, which owns chains like All Bar One. Harvester and Toby Carvery.