Higher costs dent profits at Shepherd Neame
By Abigail Townsend
Date: Wednesday 01 Oct 2025
(Sharecast News) - Shepherd Neame posted a fall in both revenues and profits on Wednesday, as inflationary pressures weighed on Britain's oldest brewer.
Revenues at the group - which also operates 286 pubs, 217 of which are tenanted or leased - fell 4.6% in the year to 28 June, to £164.3m.
On a like-for-like basis, total retail sales rose 4.4%, while beer volumes fell 9.2%. Shepherd Neame's beers include Spitfire and Bishops Finger, among others.
Group underlying pre-tax profits fell 3.7%, at £7.6m, while on a statutory basis, pre-tax profits were 7.9% lower at £6.3m.
Kent-based Shepherd Neame, which was founded in 1698, said it had made strategic progress against a "challenging" backdrop during the year.
It noted that demand had been strong throughout, and especially so during summer and Christmas.
Food and energy prices also came off recent highs during the first half.
But it acknowledged that inflationary pressures had mounted once more in the second half, due to higher labour costs, the new packaging tax and increased distribution costs, after it signed a new agreement with service provider GXO.
However, looking ahead, Shepherd Neame said that while inflationary cost headwinds would likely continue into the current year, they were expected to moderate in 2027.
Current trading was also "strong", it noted, with like-for-like retail sales 3.7% higher in the 13 weeks to 27 September, and tenanted pub income up 2.4% in the nine weeks to 30 August.
Total beer volumes were down 8.2% in the 13 weeks to 27 September.
Chief executive Jonathan Neame said: "The company has delivered a strong performance against a challenging backdrop for the sector, with consistent outperformance of the market in pub trading, while absorbing further cost inflation, in particular in labour and logistics.
"The sector remains remarkably resilient and attractive, and still presents many opportunities. We are focused on delivering a premium experience...by driving inward investment across our pubs and further developing our own brands.
"These actions will position the business future growth as and when cost headwinds subside."
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