AGM Statement

Adnams PLC

27 June 2024

 

Adnams plc - AGM Statement

The Directors of Adnams plc ("the Company"), the Suffolk-based premium beer, spirits and hospitality group, held the Company's AGM on 27^th June 2024.

The Company presented a detailed review of its previously announced financial performance for the year ending 31^st December 2023, highlighting sales growth of 3% to £66.3m (2022: £64.2m) - its third consecutive year of post-pandemic growth - which it said demonstrated the resilience of its business and brand in the face of the sector's multiple and ongoing challenges. It said sales for the five-month period to end of May 2024 had accelerated faster, outperforming the market in beer volumes and sales.

The Company also reported a loss before tax of £4m (2022: £2.3m) due to the aggregate impact of cost increases including grain, glass, CO2, energy, wages and financing, adding however that falling inflation had eased some costs in the current year. It said this, together with increasing sales, previously announced cost reduction measures and continued disciplined cost management, would support its profit improvement plan in the current year. 

The Company also outlined a series of initiatives designed to accelerate its position in a number of key high-growth and profitable markets, including greater distribution in the low and no alcohol segment where the business has developed a leadership position with its Ghost Ship 0.5% pale ale, and expanding its presence in the English whisky market where its distilling expertise has helped it secure multiple awards.

Jenny Hanlon, who replaces Andy Wood as Chief Executive on 1^st July, said: "The business has come through some challenging market conditions in the past few years thanks to a clear strategy, disciplined management, a commitment to doing the right thing by our people and customers and a lot of hard work by many.

"As conditions start to improve, we need to capitalise on our unique strengths in order to drive profitable and sustainable growth - a well-invested asset base through our brewery, distribution centre and pubs, a fantastic team of committed people with decades of brewing, distilling and hospitality expertise, an award-winning line-up of products, and a premium, heritage brand that is punching well above its weight.

"Securing additional capital from a successful funding process would help us unlock this potential, enabling us to both reduce the company's level of debt and interest costs, whilst enabling us to invest in this next phase of growth.

"Our plan is focused on ensuring Adnams fulfils its potential by becoming a profitable, brand-led, sales-focused organisation that delights its customers with its range of drinks and experiences, and supports it people, communities and environment with its values-based approach."

The Company has previously stated that, as part of its funding process, its Board is currently evaluating offers based on its agreed framework to determine which route offers the best long-term value for the Company and its shareholders, and expects to be in a position to revert to shareholders for approval on its recommendations later in the summer.

ENDS

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