Young & Co.'s Brewery (YNGA) H2 2024 earnings summary

Executive summary

• Achieved record profits of £49.4m, up 9.3% year-over-year, with sector-leading 14.7% operating margin.

• Revenue rose 7.4% to £388.8m on a 52-week basis; like-for-like sales up 3.4% against strong 2023 comparables.

• Major investment year: £243m total, including £158m for The City Pub Group acquisition and £48m in existing estate.

• Dividend increased 6% to 21.76p per share; freehold property valuation exceeds £1bn.

• Integration of The City Pub Group progressing as planned, adding 52 pubs and 240 bedrooms.

Financial highlights

• Adjusted EBITDA up 7.8% to £92.2m; adjusted operating profit up 9.4% to £57.3m.

• Adjusted profit before tax up 9.3% to £49.4m; adjusted EPS down 2.1% to 62.97p.

• Free cash flow of £43.2m, down from £55.4m last year due to higher tax and pension outflows.

• Net funds flow of -£174.3m, reflecting significant acquisition and development capex.

• Bank debt at £286.5m post-acquisition, with £48.5m headroom on £335m total facilities.

Outlook and guidance

• First 9 weeks of new year: like-for-like sales up 2.4% despite challenging weather; total sales up 24.4%.

• Focus on integrating City Pub Group, realising synergies, and investing in new pubs.

• Confident in long-term growth potential, mindful of macroeconomic and political uncertainty.