Proactive Investors - Young & Co’s Brewery's chief executive said inflation is “starting to ease” after the pub chain operator reported an increase in full-year profits.
“Our performance last year was even more impressive given the cost headwinds facing the industry and we are encouraged that some of these pressures are starting to ease,” Simon Dodd said.
Youngs’ added that, with inflation predicted to soften, it is confident margins will improve after falling to 14.2% in the year to 3 April 2023, compared to 16.6% a year earlier.
Adjusted profits before tax gained 8.1% to £45.2mln, while revenues also grew 19.4% to £368mln, according to a statement.
Inflation across wages, energy, and supplies have weighed on hospitality groups over the last 18 months, causing over 150 independent establishments to shut their doors in the first three months of the year, according to commercial property firm Altus Group Limited (TSX:AIF).
Outspoken JD Wetherspoon boss, Tim Martin, wasn’t as upbeat on inflation as Dodd when Wetherspoons last updated the market two weeks ago.
Martin said: "Sales in the last quarter have continued their positive momentum, although inflation, especially in labour, energy and food costs, remains a more intractable issue.
"In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations.
"A lack of understanding, among some senior politicians, about the need to encourage a successful free market economy, presents a real threat to the future prosperity of the country," he added.
Read more on Proactive Investors UK