Home Money Young’s Toasts Boost Holiday Liquor Sales Amid Budget ‘Headwinds’

Young’s Toasts Boost Holiday Liquor Sales Amid Budget ‘Headwinds’

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Headwinds: Young's & Co chief executive Simon Dodd said it was

Young’s & Co chief executive Simon Dodd said he was “aware of the headwinds” facing consumers after the group toasted record sales over the festive period.

Dodd told shareholders on Thursday that the hospitality sector would face “broader issues” amid rising employer contributions to national insurance and the national living wage from April.

In November, Dodd told This is Money that the hospitality sector urgently needed substantial business rates reform to help much of the industry “balance the books”.

The group previously revealed that measures announced in the autumn budget would cost it an extra £11m.

But Young’s revealed it enjoyed double-digit sales growth over the Christmas period.

Headwinds: Young’s & Co chief executive Simon Dodd said he was ‘aware of the headwinds’ facing consumers

The Wandsworth-based pub and rooms operator said it traded “exceptionally well” during the 15 weeks to January 13.

Comparable sales rose 11.6 percent, while sales during Christmas Eve, Christmas Day and Boxing Day were 10.5 percent higher.

Total revenue managed for the last 15 weeks to January 13 increased 26.1 percent and 7.9 percent on a like-for-like basis.

Dodd said: “We are very pleased with our excellent trading over the festive period, reflecting the rigorous planning, commitment and enthusiasm of our teams across the business.

‘We continued to break sales records throughout the period, achieving some of the highest daily sales in Young’s history.

“Our recent pub investments performed exceptionally well throughout the period.”

Young share price rose 4.33 per cent or 36.00 pence to 868.00 pence, having fallen more than 20 per cent in the last year.

Mr Dodd added: “Looking ahead, whilst we remain aware of the obstacles facing consumers and the wider issues our industry will face due to the rise of both National Insurance contributions and the National Living Wage, our business is in excellent shape and we continue to be optimistic about the year ahead.”

In November, Dodd told This is Money that price increases would likely reach “around 2 to 3 per cent” in the next financial year, as a result of measures announced in the Autumn Budget.

Young’s revenue rose 27.2 per cent to £250m in the 26 weeks to September 30, boosting operating profit from £7.1m to £38.1m.

Young’s latest strong figures on Thursday came after a 10.2 per cent rise in sales at rival London pub firm Fuller’s, and a 10.4 per cent rise at pub and restaurant operator Mitchells & Butlers, owner of chains such as All Bar One. Harvester and Toby Carvery.

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