Young & Co.'s Brewery, P.l.c. Class A · LSE:YNGA
Young & Co.'s Brewery, P.l.c. Class A — H1 FY2025 Earnings Presentation
26 slides from Young & Co.'s Brewery, P.l.c. Class A's earnings presentation, Nov 14, 2024
Slide 1: Interim Results
Interim Results Strong profit performance supported by City Pubs integration 26 weeks ended 30 September 24 FY25 H1 1
Slide 2: Welcome
Welcome Simon Dodd CEO FY25 H1 2
Slide 3: A busy and very successful 6 months…
A busy and very successful 6 months… Successfully integrated City Pub Group into the Young’s estate Maximised key sales opportunities such as EURO24 & Wimbledon Continued the investment in our existing best in class pub estate Reduced bank debt by £12 million Record internal succession across our pu
Slide 4: A proven strategy that continues to deliver
A proven strategy that continues to deliver • Revenue up 27.2% to £250.0 million, including City Pubs • Like-for-like revenue growth of 4.4% (5.2% excluding Easter) • EBITDA up 23.2% to £59.0 million • Sector-leading operating margin of 15.2% • Continue to invest in our best-in-class estate: • £19.4
Slide 5: Successful integration of the City Pub Group
Successful integration of the City Pub Group • All operations now under one Young’s structure • Head office and overhead synergies completed • Purchasing synergies progressing well: • New beer supply agreements • Food purchasing harmonisation underway • Benefits to be realised in H2 • Profit impacte
Slide 6: Financials
Financials Mike Owen CFO FY25 H1 6
Slide 7: Significant EBITDA and revenue growth
Significant EBITDA and revenue growth H1 2025 H1 2024 change £m £m % Revenue 250.0 196.5 +27.2% EBITDA* 59.0 47.9 +23.2% Operating profit* 38.1 31.0 +22.9% Operating margin* 15.2% 15.8% -0.6ppts% Profit before tax* 28.3 28.0 +1.1% Earnings per share* 36.72 36.08 +1.8% Dividend per share 11.53 10.88
Slide 8: Record pub AWT
Record pub AWT Managed Young's City H1 2025 H1 2024 change H1 2025 change H1 2025 £m £m % £m % £m Revenue 249.8 196.3 +27.3% 209.1 +6.6% 40.7 AWT per pub (£k) 35.2 33.4 +5.4% 35.7 +7.0% 32.6 EBITDA* 73.8 59.0 +25.1% 62.1 +5.3% 11.7 Operating profit* 53.7 42.8 +25.4% 44.7 +4.3% 9.0 Operating margin*
Slide 9: Normalised investment levels – in line with strategy
Normalised investment levels – in line with strategy Existing estate (Young's) Existing estate (City) Acquisitions H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 £m £m £m £m £m Existing estate (Young's) 3.8 11.5 14.5 20.3 15.1 Existing estate (City) 2.3 Acquisition 0.4 1.6 14.2 18.8 4.3* Total investments
Slide 10: City Pub Group investments
City Pub Group investments • Four City Pub sites have had a refurbishment, elevating them to the highest standard with impactful and value-delivering capex schemes. Two are showcased below. Phene, Chelsea Roundhouse, Wandsworth £200k scheme refreshing the bar Recent £350k scheme and external trading
Slide 11: Strong free cash flow
Strong free cash flow H1 2025 H1 2024 £m £m EBITDA 59.0 47.9 Rent Payments (5.1) (4.9) Working Capital (8.8) (4.5) Maintenance Capital (9.2) (8.9) Interest (7.8) (1.6) Tax 0.9 (7.0) Pension & Other (4.1) (2.1) Free cash flow 24.9 18.9 *In respect of leases held as right-of-use assets under IFRS 16 F
Slide 12: Net funds flow
Net funds flow H1 2025 H1 2024 £m £m Free cash flow 24.9 18.9 Share proceeds 0.0 0.0 Dividends (6.8) (6.0) Development CAPEX (12.5) (11.6) Acquisitions 0.0 (18.6) Disposals 6.4 0.0 Net funds flow 12.0 (17.3) FY25 H1 12
Slide 13: Well invested, predominantly freehold estate
Well invested, predominantly freehold estate Combined estate 80% effective freeholds Totalportfolio Total pub countcount April 2024 288 Freehold pub valuation of £1.0 billion Additions - Consistent with our goal to reduce debt and focus on future growth: Transfers - Disposals -7 • Disposed of 6 mana
Slide 14: A track record of results
A track record of results FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 £m £m £m £m £m Healthy operating cash generation 0.0 71.4 48.5 41.3 45.2 Adjusted PBT* (19.6)* 21.8* 25.0 28.0 28.3 Active investment strategy 4.2 13.1 28.7 39.1 21.7 Adjusted earnings per share (31.80p)* 22.22p* 34.54p 36.08p 36.72p
Slide 15: Bank debt & facilities post City Pub acquisition
Bank debt & facilities post City Pub acquisition Current debt : £258.9m* Current headroom : £76.1m Total facilities : £335.0m* 140.0 5 + 1+1 120.0 Net debt/EBITDA (post IFRS16) 2.6x 100.0 Net debt/EBITDA (pre IFRS16) 3.4x 80.0 £m 60.0 120.0 110.0 40.0 50.0 20.0 35.0 20.0 - 2024 2025 2026 2027 2029 2
Slide 16: Capital allocation framework
Capital allocation framework Investment in long- Sustainable & Medium term Future term LFL growth growing dividend debt reduction acquisitions • c.£25m invested • Returning capital • Strengthening • Clear acquisition annually into to shareholders balance sheet strategy with Young’s estate • Interim
Slide 17: Operational Review
Operational Review Simon Dodd CEO FY25 H1 17
Slide 18: Investment and innovation delivering growth
Investment and innovation delivering growth • We maximised EURO24 opportunity, which delivered £2.8 million additional revenue • Prior period large investments delivering true like-for-like volume growth, including Guinea and Leather Bottle • The Ram Agency now covers almost 10% of total employees a
Slide 19: Strong LFL growth
Strong LFL growth No. of pubs 18 Central London 16% 16 West London 13% 59 South West London 5% 12 City 5% 16 North London 3% 18 Thames-side 1% 7 South London -1% 10 East London -2% 38 Home Counties 1% 24 West Country 2% FY25 H1 19
Slide 20: Strong performance throughout EURO24
Strong performance throughout EURO24 Young’s performance by day vs. LY% 97% 57% 59% 46% 35% 33% 18% 21% 10% 12% 7% 11% 10% 3% 3% 5% 2% 10% 7% 1% 1% 4% 1% -16% -18%-4% -5% -16% -16% 0% -2% -4% -6% -3% -10% Tue Thu Tue Thu Tue Thu Tue Thu Tue Thu Fri Mon Fri Fri Fri Fri Sat Sat Sun Sat Sun Mon Sat Sun
Slide 21: Premium drinks in demand
Premium drinks in demand Growth Revenue Beer & Cider Cocktails LFL +5.3% +9.8% +10.7% Total +28.0% +27.2% +28.8% Introduced exciting Volume growth Guinness growth Our summer spritz new beers from strong with LFL beer continues – Young’s menus helped drive smaller business +4.8% & cocktails volume up
Slide 22: Maximising food spend per head
Maximising food spend per head Growth Revenue Sunday Sales Bar snacks & sides LFL +2.9% +6.4% +9.3% Total +22.8% +15.6% +20.8% Positive sales growth Focus on fresh, seasonal enhanced by maximising and locally sourced British spend per head from a ingredients with menus premium menu & tailored to the
Slide 23: Over a thousand rooms
Over a thousand rooms Growth Revenue RevPAR £ LFL +2.7% +3.1% Total +37.1% +2.7% ARR increased by £4.81, occupancy dropped by 0.9% resulting in a RevPAR increase of £2.68 to £88.89 City bedrooms performing well with the 13 sites averaging RevPAR of £94.70 Room investments at the Windmill (Clapham),
Slide 24: Strong start to H2
Strong start to H2 • Last eight weeks like-for-like sales up by 6.0% and up 9.2% in the last three weeks, boosted by the return of the Autumn Internationals • Recently opened the stunning Tellers Arms, a former bank and Tattenham corner in Epsom due to open in January • Optimistic about the Young’s
Slide 25: Well positioned for long term growth
Well positioned for long term growth • Continued Investment in our existing best in class pub estate • Strong balance sheet; Reducing debt position • Proven strategy of running premium, individual and well invested estate • Delivering synergies and growth from the City Pub Group acquisition FY25 H1
Slide 26: Q&A
Q&A FY25 H1 26
Young & Co.'s Brewery, P.l.c. — H1 FY2025 Earnings Presentation on 6ix