Young & Co.'s Brewery (YNGA) H1 2025 earnings summary

Executive summary

• Revenue rose 27.2% year-over-year to £250.0m, driven by the City Pub Group acquisition, strong trading during EURO24 and Wimbledon, and successful integration delivering £6.1m annual overhead synergies.

• Like-for-like revenue grew 4.4% (5.2% excluding Easter), despite challenging weather, economic headwinds, and cost pressures including National Minimum Wage and National Insurance increases.

• Interim dividend increased 6.0% to 11.53p per share, reflecting a progressive dividend policy and focus on sustainable shareholder returns.

• Reduced bank debt by £12 million to £255.8m (2.6x EBITDA), with total facilities of £335.0m and £76.1m headroom; net funds flow positive at £12.0m.

• Record internal succession and operational excellence maintained amid a challenging economic landscape.

Financial highlights

• Adjusted EBITDA up 23.2% to £59.0m; adjusted operating profit up 22.9% to £38.1m; adjusted profit before tax up 1.1% to £28.3m; adjusted EPS up 1.8% to 36.72p.

• Profit before tax rose 3.3% to £25.3m; profit after tax increased to £20.3m from £17.4m; basic EPS up 8.3% to 32.21p.

• Revenue increased 27.2% to £250.0m, with like-for-like revenue growth of 4.4% (5.2% excluding Easter).

• Free cash flow rose to £24.9m from £18.9m year-over-year.

• Managed house EBITDA up 25.1% to £73.8m; like-for-like managed house revenue for the last eight weeks up 6.0%.

Outlook and guidance

• Strong start to H2 with last eight weeks like-for-like sales up 6.0% and 9.2% in the last three weeks; Christmas bookings up 33% year-over-year.

• Further synergy benefits from City Pub Group expected in H2; continued investment in estate and premium positioning to drive long-term growth.

• Autumn budget cost impact for National Minimum Wage and National Insurance estimated at £11m annualized from April 2025, with mitigation plans underway.