Disappointing half-year results for Adnams

By Mathew Lyons

Published: 14 August, 2019

Sales at Suffolk-based drinks group Adnams fell 2% year-on-year in the first half of 2019.

Turnover for the six months to 30 June 2019 was £34.7m, down from £35.5m for the same period in 2018, the company said in its interim accounts, released today.

The group also posted an operating loss of £783,000 for the half-year, up from losses of £557,000 in the first half of 2018. Last year’s figure was offset by a property sale which recouped £44,000.

Sales volumes of Adnam’s gin were down in the six-month figures but the company is hoping sales will revive with the release of two flavoured expressions this year. Orange & Sea Buckthorn was launched in March and Lemon & Tamarind in June.

Sales through Adnams retail estate were up year-on-year, the company said, while profits at The Swan Hotel in Southwold were up 14% on the back of sales growth of 11%.

Turnover at the visitor centre was also up, with distillery tours growing 16% and brewery tours 3%.

Adnams pointed to the disruption caused by the installation and launch of new systems internally as a key factor in the half-year figures. The company’s new system went live at the end of March.

Chairman Jonathan Adnams said in a statement: “The last few years have seen substantial change and considerable investment in the Adnams business as we have positioned ourselves in crowded and rapidly changing markets.

“Looking ahead, we have properties and products that are truly premium and award winning, a talented, loyal and determined workforce and a strong reputation for innovation and sustainability. The investments that we have made across our business leave us in good shape for the long term.”

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