The family-controlled business, which has been brewing beers in Masham for almost 200 years, recorded a pre-tax profit of £248K for the period, an increase from £18K in the previous year.
The increased profitability comes as the business also saw turnover increase by 21% to £8.2m in the same period, despite the challenges of inflationary pressure on production costs, increased operational expense for customers and consumers feeling the pinch on their disposable income.
The report highlights that although the business felt the effects of these issues, it achieved market share growth across all trade channels in 2023, with its two largest brands Theakston Best and Theakston Old Peculier both achieving volume growth.
Knee-jerk reactions
Theakston added its approach to take a longer-term view of its pricing and “avoid knee-jerk increases” had supported this growth, with consumers keen to secure “a quality product at a fair price”.
T&R Theakston chairman Simon Theakston said: “We’re pleased to report an increase in profitability as demand for our high-quality beers among customers in both the on and off-trade markets is high.
“The past 12 months have proved to be a pivotal year for the business as we continue to navigate towards our 200th anniversary and we’re pleased to see that demand for cask ale has endured with volumes growing by 5%.
“The increased availability of our beers in both the on and off -trade, alongside Old Peculier’s triumphant return to the American market after a 10-year absence as well as the launch of exciting new products, including our 3.4% ABV Theakston Quencher, have meant we’ve been able to continue our steady growth.”
Hop-forward cask ale
He continued: “Quencher, a hop-forward cask ale, was designed to meet the demand for lower alcohol beers and has gone from strength to strength since launch, now becoming our third best performing cask beer.”
Looking to the future, Theakston expects both strong volume and profit growth in 2024 for its beers.
Theakston said: “With a healthy balance sheet and secure financial arrangements, we remain focused on growing our revenue and are excited about what’s to come this year.
“The results of past 12 months show the benefit of constant evolution rather than revolution.
“As a result of our strong start to 2024, the board of directors are confident that the pace of growth, which has been steadily increasing post-Covid, will accelerate this year thanks to our strong brands and our solid business foundations.”
