The group that operates 1,258 pubs – with 92% owned on a freehold or long leasehold basis – made the announcement as it reported total revenue in its 2024 financial year ended 11 August 2024 was up £10.8m from £313.5m in 2023 to £324.3m.
Underlying EBITDA (earnings before interest, taxation, depreciation and amortisation) has increased to £91.2m (£81.3m: 2023) while operating profit reached £73.8m (£63.3m: 2023).
The group explained the moving annual total (MAT) EBITDA of £91.2m will be further boosted by £3.4m incremental EBITDA from the recent acquisition of 16 pubs in the period and by £2.8m of run-rate cost saving efficiencies to be realised within the next 12 months, leading to an adjusted run-rate EBITDA of £97.4m.
Profitability ahead
It added Q1 of FY25 trading to date “has been encouraging with profitability ahead of the prior year”.
In its review of the 52-week period to 11 August 2024, Punch said: “We operate a community pub estate and therefore have limited exposure to the high street, city centre and late-night markets and we do not operate pub brands with each pub being individual.
“We operate a drinks-led pub estate and therefore have lower exposure to destination dining with c.80% of our income coming from drink.
“Being a drink-led community estate, our pubs tend to have a smaller footprint in terms of size and labour requirement, thus benefiting from lower fixed costs to operate.
“Our pubs are operated by independent entrepreneurs as opposed to being fully managed. Consequently, we are not directly exposed to changes in labour rates.”
Like-for-like sales growth
It added approximately one third of its EBITDA profit comes from rental income, predominantly on inflation linked five-year tenancy agreements.
All three divisions (Leased & Tenanted, Management Partnership and Laine) delivered like-for-like sales growth versus last year.
Underlying EBITDA for the pub estates before central costs increased by £11.2m to £117.3m, up 11%.
Punch acquired 36 pubs at a cost of £25.2m and spent £28.8m (prior year: £30.8m) on expansionary and maintenance capital.
It added it has identified the next tranche of pubs to convert to the Management Partnership model, which total 70 sites.
- To read about Punch Pubs’ acquisition of 14 pubs in September, click here.
