Shepherd Neame has reported record turnover and record beer volumes for the half-year to 26 December.
However, the Kent-based brewer and pub operator, said it remained "cautious" about the impact of potential rises in VAT and excise duty over the next couple of years.
Turnover rose 8.2% to £60.8m with operating profit up 24.2% to £6.4m. Profit before tax rose 38.5% to £4.9mwith beer volumes up 7.9%. Basic earnings per share is up 38.6% to 28.7p.
Like-for-like sales in the 47-strong managed estate rose 2.4% with food the main driver — up 5.3%. Alcohol sales grew 1.4% on a like-for-like basis. Accommodation was the weakest area but has now levelled out to 0.5% below last year.
"Although reservations were strong, we experienced a significant number of last minute cancellations, particularly in rural areas, as a consequence of the snow and ice in the week prior to Christmas," said chairman Miles Templeman.
"Nonetheless our performance over the festive period was level with last year which was creditable in the circumstances. The severe weather conditions have continued to impact trade in January and early February."
Small tenanted pub struggle
Over the last twelve months, Shepherd Neame said the average earnings before interest, tax, depreciation and amortisation (EBITDA) per pub — including the 322 tenanted and leased pubs — has grown 2.5%. However, like for like EBITDA per pub has fallen 4%.
"The decline is most acute in the smallest tenanted pubs, most of which have been identified as non-core and are part of the programme to dispose of 35 tenanted pubs over the next two to three years as announced in October 2009," said Templeman.
Excluding those pubs sold or identified for disposal the core like-for-like EBITDA per pub was down 2.9%. Shepherd Neame sold eight pubs and six unlicensed premises for £2.6m in the six-month period and has a further six pubs up for sale. It acquired no new pubs in the period but has added 15 high turnover pubs to its estate over the year
Beer volumes enjoyed a "strong performance" with volumes up 7.9% and own bottled beer sales up 11.4% following investment in a new bottling line.
Good period
This has been a good trading period for the company," said Templeman. "All parts of our core business have performed strongly and we have consolidated recent investments very satisfactorily.
"Our new pubs are performing well and we are addressing the issues in our smaller tenanted pubs decisively.
"We remain cautious about the impact on consumer expenditure of further potential rises in excise duty, VAT and other taxes over the next year or two and by the impact of further potential regulation on the sector."