Belhaven brews up success with profits

Published on Thursday 2 July 2009 10:09

BELHAVEN has recorded a milestone full-year operating profit of £30.2 million, despite the problems affecting the sector.

The Dunbar-based brewer of Belhaven Best saw growth of 11.9 per cent over the year, while results were also boosted by a stronger than expected performance from its managed pubs.

The figures were revealed as company owner Greene King announced pre-tax profits for the year had fallen 15 per cent to 118.5m.

The results were described as "resilient" and the company said sunnier weather and a shift towards food had helped to create strong recent trading.

Over the year, Belhaven saw revenue of 136m, up 9.9 per cent, despite "significant cost pressures", while the number of pubs trading grew from 321 to 325.

The company saw like-for-like sales at its managed pubs, which include the Capital's Albanach, World's End and Pivo, up 5.4 per cent, driven by food and liquor sales.

Total food revenues were up 49 per cent and food is now 25 per cent of total revenues, up from 15 per cent just two years ago.

The company again saw Belhaven Best retain its place as Scotland's leading ale brand, with a 21.5 per cent share of the Scottish on-trade ale market. TV advertising helped the ale grow its market share towards the end of the year.

Despite the strong results, Belhaven said it remained cautious about the future outlook, saying there was concern about the risk to Scottish public sector employment levels in 2010, and the possible knock-on effect that would have on the business.

The wider Greene King group saw a recent boost in trading, with like-for-like sales across its managed outlets – which include Old English Inns and the Hungry Horse chain – up 5.2 per cent in the eight weeks to June 28.

Food now accounts for more than a third of its retail sales but the better weather also led to an improved performance from its drink-led pubs.

Despite uncertainty over the outlook, the firm behind the market-leading Greene King IPA cask ale, added that brewing volumes were also 12.1 per cent ahead.

Over the year Greene King has acquired 11 'high quality' pubs at a cost of 30.4m, among them The Cuddie Brae in Musselburgh.

Rooney Anand, Greene King chief executive, said: "We have delivered a resilient set of results in the face of extremely challenging trading conditions.

"Notable performances came from Belhaven, which is now generating profits 50 per cent above the level on acquisition in 2005.

"Trading generally improved from December, although cost pressures remain and both economic and political uncertainty are affecting consumer confidence.

"We look forward with cautious optimism and believe we have the best assets, brands and people to continue growing our share of the market."