Adnams loss widens after Covid-19 pub closures

Adnams plunged to a £3.8m loss in the first half as the brewer's business was hit by pub closures during the Covid-19 shutdown.

The company's pretax loss for the six months to the end of June widened from £1.15m a year earlier as revenue dropped to £20.9m from £34.7m. Operating costs dropped to £24.5m from £35.5m.

Adnams said non-pub sales make up about a fifth of its normal trade and that the closure of UK pubs from 23 March for the rest of the first half had a big impact on its drinks business. The company declared no interim dividend and said it would restart paying dividends when the time was right.

At the end of February beer sales were almost 3% less than a year earlier but in March they fell 25% and in April sales dropped 34%. Take-home beer sales to supermarkets and other shops jumped 57% in April and were up 25% for the first half as drinkers bought Ghost Ship and other brews to consume at home. Gin volumes fell 17% but take-home gin sales rose 25%.

Chairman Jonathan Adnams said: "Our diversified strategy has enabled the business to pivot and adapt to the changing environment quickly. Through controlling costs, maximising opportunities, and delivering operational excellence at pace has ensured that we have continued to grow the parts of the business that could operate."

Online sales rose fourfold and the company said it would work to keep customers buying online as other outlets reopen.