Adnams, the producer of Ghost Ship, has managed to halve its operating loss amidst a commercial turnaround plan, despite ongoing struggles in retail sales.
The Suffolk-based firm, known for its cask ale, bottled beers and spirits, reported a three per cent increase in sales to £68.1m for the year ending December 31, as reported by .
The company's operating loss was more than halved, dropping from £2.5m in 2023 to £1.1m in 2024, while its pre-tax loss also decreased from £4m in 2023 to £2.7m in 2024.
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Revenue growth was observed across all sectors of the business on a like-for-like basis, with the exception of retail trading where Adnams admitted conditions "remained challenging."
As part of efforts to boost revenue growth and profitability, Adnams has initiated a commercial turnaround plan, with its 2024 performance reflecting the "early stages" of this strategy.
Interim chair Simon Wood expressed disappointment at the contribution from their shops, necessitating a comprehensive review of product and service costs across all channels and product lines.
Adnams outperforms the market
Despite a market decline of 7.6 per cent, Adnams' cask ale volumes only fell by 5.3 per cent.
Off-trade ale volumes saw a minor decrease of 0.3 per cent year on year, outperforming the wider industry decline of 6.3 per cent.
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On-trade ale volumes experienced a 5.8 per cent drop, worse than the broader market fall of 3.7 per cent, although Adnams noted an improvement "improved during the course of the year".
Wood emphasised the "significant change" seen in their firm throughout 2024, projecting an improvement in financial performance from 2025 onwards.
"The market in which we are operating continues to be immensely challenging, and our business is having to become unashamedly commercial if we expect to be able to compete effectively, grow our share and improve our underlying performance," added Wood.
The company witnessed a series of board changes in 2024, with notable appointments including Simon Townsend as interim chair and Jenny Hanlon taking on the role of CEO.