Butcombe Group, a pub operator and brewing group with sites stretching from Mayfair in London to St Aubin in Jersey, has reported robust financial performance for the year ending 25th January 2025.
The group achieved record revenues of £149 million, up from £144.4 million the previous year. The group’s managed pubs significantly outperformed the sector with a 7.8% increase in like-for-like revenue, supported by a 150 basis points improvement in EBITDA margins across its managed estate. Underlying group EBITDA grew by 7.4%, with Divisional EBITDA also showing strong growth at 8.1%.
Operational highlights include strategic investments in pub estates, enhancements in menu offerings to cater to changing consumer preferences, and successful expansion of Butcombe Boutique Inns, contributing positively to results.
Jonathan Lawson (pictured), CEO of Butcombe Group, said: “We are delighted to report another strong year across all divisions of Butcombe Group. We have delivered record revenues and sector-leading like-for-like growth of 7.8% in our managed pubs, a clear indication of our continued operational strength and effective strategic investments. This result is especially pleasing considering the strong comparatives we faced against last year.
“We have made substantial progress in harnessing our data and loyalty capabilities, which have significantly enhanced our customer understanding and engagement. With loyalty transactions across our managed pubs now representing 22% of total sales and a greater percentage of our like-for-like growth.
“Encouragingly, we’ve carried this momentum into the new financial year, achieving impressive Q1 like-for-like sales growth of 11.1%, underpinned by strong performances in food (+10.3%), drink (+13.3%), and accommodation (+5.3%). Notably, we delivered our highest-ever trading day on Mother’s Day, surpassing our previous record set on Christmas Day, further highlighting the strength of our proposition.
“The Brewing and Drinks division was broadly flat versus last year in Q1, once again the UK Free Trade performance lead the way growing by 8% vs LY, with online ordering now adding a further service provision to our customers and driving basket spend. The success of Goram IPA Zero, our award-winning low alcohol IPA has encouraged us to develop Tall Tales Pale Ale Zero, a refreshing Pale Ale that will be perfect for the summertime.
“While we remain mindful of the ongoing inflationary pressures and changes to National Insurance contributions that impact the broader hospitality sector, we are confident in our strategy. Our continued focus on premium segments, operational efficiencies, and customer-centric innovation positions us strongly for sustained EBITDA growth and margin enhancement through the rest of the year.”
