Timothy Taylor, the company that brews Madonna's favourite tipple, Landlord, has reported an increase in turnover but a drop in profit after being "slaughtered by a spike in input costs" for its most recent full year.
The company saw turnover rise from £19.39m in 2007 to £20.74m in the year ended 30 September 2008. However, administrative expenses increased by around £1.25m year-on-year so that operating profit was down to £2.57m compared to £3.44m the year before.
Pre-tax profit was boosted by a profit on the sale of an investment of £514,682 compared to £8,302 the year before to leave profit before tax at £3.15m compared to £3.68m in 2007.
Managing director Charles Dent told the Morning Advertiser: "We were slaughtered by a spike in input prices. We have a price review in October each year and after we set prices in July we saw malting barley go up from £90 a ton to £200 a ton.
"We were protected by a supply contract for hops and malt but prices rose by two to three times. In addition, there were oil, gas and utilities price increases."
Nevertheless, the brewery saw record volume of more than 60,000 barrels — a doubling of barrelage in the past decade. Around 90% of Timothy Taylor volumes go through the free trade, with 5% bottled and 5% sold through its own pubs.
Dent reported that this year beer volumes sold through its own pubs are actually up, a reversal of a long-term trend stretching back 17 years.
"I think we've finally got to the bottom of that slide," he said.
Timothy Taylor owns 29 pubs in West and North Yorkshire as well as across the border in East Lancashire. They range from town centre taverns and community locals to wayside inns and isolated country pubs.
Between 1998 and 2008, more than £12m was invested in an extensive programme of refurbishment and purchases to improve the pub estate.