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Morning Briefing for pub, restaurant and food wervice operators

Mon 17th Dec 2012 - Breaking News - Charles Wells - Sales up in period of transition
Charles Wells reports sales up, profits down: Brewer and retailer Charles Wells has reported sales up £1m to £189m with profit after tax of £6m in the year to 29 September - down from £6.6m the previous year. EBITDA was up four per cent to £17.4m. The company reported it anticipated a fall in overall profit as the full effect of losing income from Red Stripe and Corona was felt. However, the decline was mitigated with the acquisition of the McEwan’s and Younger’s brands in October 2011. The brewing company now owns 80 per cent of its brands, as opposed to 2005 when the portfolio consisted of 80 per cent licensed brands – the company grew owned beers by 2.1 per cent in the financial year. International sales recorded another year of double-digit sales growth and an increased margin growth, up 27.7 per cent on the year. The wine company, Cockburn & Campbell, saw overall sales growth of six per cent, with wine volume rising 2.8 per cent in an on trade market declining five per cent. Charles Wells Pub Company bought four high quality sites, integrating them into the estate with minimum disruption - all four licensees already ran other Charles Wells brewery pubs. Turnover decreased by 4.9 per cent but like for like sales were up 1.2 per cent, with EBITDA per pub up 3.8 per cent. The business continued its planned disposal strategy with the sale of 22 pubs. The John Bull managed house operations in France saw operating profit rise 38 per cent, with EBITDA close to breaking the €1m mark. An eighth pub – The King Arthur in Lyon – was acquired and the company remains on target to achieve an estate of 16 pubs by 2016. To help achieve the company’s strategic objectives for growth in 2013, Charles Wells has made two new appointments. Justin Phillimore has been appointed to the role of managing director of Wells & Young’s Brewing Company, the brewing and brands division of the company. Phillimore has been with the company for six years and is moving from his current role as group finance director of Charles Wells. The company stated: “He brings strong strategic and international expertise having previously worked for a GE joint venture in a global strategic role and for eight years with Seagram, latterly in Prague as regional finance director for Seagram for Central and Eastern Europe.” Andrea Holton joins as human resources director for Charles Wells, overseeing all the company’s trading divisions. Holton joins from DHL where she was most recently vice president human resources for UK and Ireland. Paul Wells, chairman of Charles Wells, said: “Our performance this year has been in line with expectations and we have invested for the future through acquisition of beer brands and high quality pubs in the UK and France. Our international sales and pub operations have demonstrated that growth is possible at home and overseas, despite the difficulties of the global economy and our wine company has also delivered excellent growth. It’s good to see that so many licensees who run a Charles Wells brewery pub are outperforming the market and within our core estate we have seen some exceptional achievements. Our support packages have helped us to attract some of the highest calibre licensees and help them be successful in their pub and this has contributed to lifting the average length of tenure over six years.”

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