Slides
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Full Year Results for the 52 weeks ended 29 March 2025
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01 | OVERVIEW 02 | FINANCIAL REVIEW 03 | STRATEGIC PROGRESS 04 | CURRENT TRADING & OUTLOOK 05 | Q&A AGENDA
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A GREAT LONG -TERM INVESTMENT Fuller’s has always been, and remains, a great long-term investment A resilient business model • Strong Balance Sheet – freehold asset backing with low debt • Premium customer base, better equipped to withstand tougher economic times • Secure and robust dividend yield • Strong track record and opportunities to grow Underpinned by a high-quality freehold estate – based in prosperous areas of Southern England • Materially undervalued by current share price • Opportunity for long-term capital growth A UK based business with predominately UK supply chains
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Launched buy back of 6.5m ‘A’ shares BUILDING ON OUR STRENGTHS Getting the big decisions right ... at the right time Transferred 23 pubs from Managed to Tenanted – generating an incremental £1m of profit annually Sold 37 non-core Tenanted pubs – changes to Tenanted estate have increased average EBITDA per pub by 23% Sale of The Mad Hatter for £20m Enhanced estate with addition of Lovely Pubs – seven outstanding sites in Worcestershire / Warwickshire villages Completed buyback of all 6.5m ‘A’ shares issued in April 2021 – reacquiring 12% of the Company at a discount to the original placing Buy in of pension plan to reduce exposure to future liabilities Final dividend of 12.35p giving a total return to shareholders in the year of £34.6m in dividends and share buybacks – an increase of 54% on the prior year Completed refinancing, reducing interest margin by 75bps Started new programme of share buybacks – target of 1m ‘A’ shares September 2022 April 2023 July 2024 August 2024 January 2025 March 2025 June 2025
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STRONG FINANCIAL RESULTS £12.7m £20.5m £27.0m FY23 FY24 FY25 11.0% 5.2% FY24 FY25 Market average Managed LFL Like for Like (‘LFL’) Sales Adjusted Profit Before Tax • Outperforming the market • Continuing into FY26 • Strong growth of underlying profitability • We are delivering improvements across the business * Market average source: CGA RSM Hospitality Business Tracker +113%
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STRONG SHAREHOLDER RETURNS Adjusted earnings per share (‘EPS’) Annual dividend • Profit growth plus share buybacks yielding industry leading EPS growth • EPS grew by an outstanding 40% in FY25 • The strong EPS growth has enabled good growth in income for shareholders 14.68p 17.75p 19.76p FY23 FY24 FY25 16.10p 24.48p 34.22p FY23 FY24 FY25 +123% +35%
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Strong start to the new financial year Like for like sales up 4.2% A CONFIDENT APPROACH TO THE FUTURE Fuller’s is a strong business with a great track record – we are optimistic about the future and confident in… Our proposition • Delivering a premium offer and high-quality service • Remains relevant and attractive to our customers Our quality estate The best freehold pub and hotel estate in the UK Our people Excellent training to develop home-grown talent Our ability to grow The right pubs, people, customers and offer mitigates external challenges Our long-term prospects Consistent strategy already delivering growth for the long term
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FINANCIAL REVIEW
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INCOME STATEMENT FY2025 £m FY2024 £m Revenues 376.3 359.1 +5% Operating costs (335.9) (324.6) Adjusted operating profit 40.4 34.5 Finance costs (13.4) (14.0) Adjusted profit before tax 27.0 20.5 +32% Separately disclosed items 6.8 (6.1) Taxation (6.6) (5.3) Statutory profit after tax 27.2 9.1 Adjusted EPS 34.22p 24.48p +40% • Strong revenue growth, with total sales up by 5% • Improvement in operating margins, despite challenging environment up from 9.6% to 10.7% • Adjusted profit before tax up 32% to £27.0m, with adjusted EPS growing by an impressive 40% to 34.22p • Dividend per share of 19.76p consisting of interim payment of 7.41p per share and proposed final dividend of 12.35p
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DIVISIONAL RESULTS FY2025 £m FY2024 £m Managed Pubs and Hotels Revenue 342.7 325.3 Operating profit* 47.6 41.6 EBITDA* 70.9 64.0 EBITDA % 20.7% 19.7% Tenanted Inns Revenue 33.6 33.8 Operating profit* 14.4 13.7 EBITDA* 17.6 16.7 EBITDA % 52.4% 49.4% Central costs Operating costs* (21.6) (20.8) % of revenue 5.7% 5.8% Total revenue 376.3 359.1 Total operating profit* 40.4 34.5 • Revenue in Managed Pubs and Hotels increased by 5%, strong performances across the estate • Operating profit up 14% on prior year with Managed EBITDA margin increasing to 20.7%, reflecting continued focus on driving profitability • Tenanted revenues down marginally due to disposals, but profits up 5% ̶ Reflecting changes to the Tenanted estate, which have improved average EBITDA per site by 23% • Central costs a little higher due to inflation – decrease as a percentage of revenue * Excluding separately disclosed items
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MANAGED REVENUE ANALYSIS • Excellent like for like sales growth of +5.2% against prior year, outperforming the market on average by 2.5 ppt • All areas of the estate in strong growth+3.6% +5.5% +5.6% +5.2% Rural Suburban Urban Total LFL Sales v PY No of sites* 31 68 69 168 Total Sales £m 187.7 102.1 35.5 325.3 195.4 110.6 36.7 342.7 Drink Food Accommodation Total FY2024 FY2025 Well-balanced revenues with strong growth across all categories • Like for like drink sales up 5.3% • Like for like food sales up 4.8% • Accommodation like for like sales up 5.4%, with RevPAR up by £3.28 at £100.55 *Number of comparable pubs at 29 March 2025
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MANAGED MARGIN GROWTH Gross profit improved through: • Enhanced food development • Premiumisation of offer • Effective procurement and management of inflation Labour costs have increased, National Living Wage (‘NLW’) increase of 9.8% in April 2024, partially mitigated by robust labour scheduling Increases in NLW and National Insurance in April 2025 will see an estimated increase in costs of £8m, offset via further efficiencies and price increases Focus maintained on other operating costs, such as utility costs, down £2m in FY2024 and £1m in FY2025 17.4% 19.7% 20.7% FY2023 FY2024 FY2025 Managed EBITDA %
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STRONG BALANCE SHEET FY2025 £m FY2024 £m Property, plant & equipment* 585.7 581.9 Right-of-use assets (IFRS 16) 52.8 58.7 Other non-current assets 30.0 48.9 Current assets (excluding cash) 19.6 20.9 Net debt (excluding leases) (142.2) (133.1) Other current liabilities (53.9) (60.5) Lease liabilities (IFRS 16) (60.8) (65.9) Other non-current liabilities (19.5) (19.6) Net assets 411.7 431.3 High quality asset base • 87% of the estate are freehold sites • Invested £28m into the estate to maintain and enhance our premium position • Acquired Lovely Pubs and The White Swan, Twickenham – seven freehold sites and one leasehold Full buy-in of the Fuller’s pension plan completed in December 2024 reducing exposure to further liabilities Modest increase in net debt to £142.2m despite significant investment in the business and strong returns to shareholders of £34.6m through dividend and share buybacks *Held at cost, last revalued in 1999
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NET DEBT Facility Term Cost Drawn (net of cash)* Bank facilities £185m August 2028 SONIA plus 150bps – 230bps £120.7m Debentures £19.9m April 2028 6.875% £19.9m Preference shares £1.6m n/a 7.5% £1.6m Total £206.5m £142.2m Net debt at 29 March 2025 of £142.2m excluding leases (30 March 2024: £133.1m) Reduced leverage – net debt/EBITDA** of 2.36 times (30 March 2024: 2.5 times) New banking facilities of £185m have been agreed for a tenure of three years through to August 2028 with the option to extend for a further two years Facility is split between a term loan of £85m and a RCF of £100m with interest margin 75bps lower than previous facilities terms *Net of arrangement fees **Pro forma net debt / EBITDA is calculated on a 12-month basis adjusting as appropriate for acquisitions and pub disposals
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CASHFLOW FY2025 £m FY2024 £m Adjusted EBITDA 67.6 60.8 Working capital (7.7) 7.7 Interest (10.0) (10.4) Tax payment (2.0) (1.0) Pension (1.5) (2.6) Acquisitions (25.4) - Capital expenditure (27.8) (27.2) Disposals 40.5 - Lease payments (8.3) (8.7) Other 1.3 3.8 Free cashflow to equity 26.7 22.4 Dividends (10.7) (10.0) Share buybacks (23.9) (12.4) Cash movement in net debt (7.9) - Non-cash movement (1.2) (0.3) Movement in net debt (9.1) (0.3) • Robust cashflow generation • Working capital outflow is largely the reversal of inflow that arose last year due to timing of payment runs • Acquisition of Lovely Pubs in August 2024 and The White Swan, Twickenham in March 2025 for total of £25.4m • Continued to invest in the existing estate to maintain its premium position, £27.8m invested in FY2025 • Disposal proceeds largely relate to 37 non-core tenanted sites sold to Admiral Taverns for £18.3m and £17.0m from the disposal of The Mad Hatter • Total of £34.6m returned to shareholders through dividends and share buybacks, increase of 54% on prior year • Share buyback programme of 6.5m ‘A’ shares was completed in January 2025, a further one million programme commenced in March 2025 and is ongoing
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CAPITAL ALLOCATION FRAMEWORK CAPITAL RETURNED TO SHAREHOLDERS INCREASED BY 54% ON PRIOR YEAR £57M RETURNED IN THE PAST TWO YEARS Invest in long-term organic growth Sustainable and progressive dividend Invest in additional growth opportunities Targeting leverage of 3x Net Debt / EBITDA Returns-based approach to capital investment Dividend cover normalised range of 2.5-3x Disciplined approach to assessing investment opportunities Strong Balance Sheet maintained – target leverage at 3x Net Debt / EBITDA Invested £28m into the estate in FY2025 with plans to invest similar levels in FY2026 • FY2025 dividend of 19.76p – up 11% • Progressive dividend growth in line with EPS growth once dividend cover normalised Strong balance sheet with headroom for high quality acquisition opportunities Completion of 6.5m ‘A’ share buyback programme in January 2025, further one million ‘A’ share buyback commenced in March 2025 Policy Targets and Philosophy FY2025 Update and FY2026 Outlook
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IFRS16 reconciliation in appendix FY2026 GUIDANCE We will continue to deliver sales and earnings growth despite the impact of external factors Depreciation in the region of £28m Interest charge lowered to £12m Adjusted effective tax rate estimated at 27% Capital expenditure of £25m – £30m
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STRATEGIC PROGRESS
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POSITIONING THE BUSINESS FOR CONTINUED SUCCESS Changes to the Board Michael Turner will retire in July after 47 years of outstanding contribution to Fuller’s including 18 years as Chairman Simon Emeny will become Executive Chairman – the first non-family member to hold this post Fred Turner to become Chief Operating Officer – with responsibility for all commercial areas Jane Bednall was appointed to the Board in April 2025 – an experienced NED who will focus on employee engagement We will continue to build on our long-term strategy by investing in: • Always improving and maintaining our properties • Continuously developing our people • Always refining our customer proposition around food, drink, accommodation and reasons to visit – while developing and delivering the best customer journey both physically and digitally
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Invested £28m in 14 major schemes Refurbished 277 bedrooms – 27% of the Managed estate Installed a further 14 electric kitchens £1.8m invested in gardens and outdoor spaces Post year end, reopened The Chamberlain Hotel in the City of London following a £4m investment Case Study: The Head of the River, Oxford INVESTING IN OUR ICONIC ESTATE Investment: £1.9m Works: Total electrification, complete refurbishment of 19 bedrooms – including installation of air conditioning, refurbishment of trading area and riverside terrace Closure weeks: 15 Result: 9.1% rise in sales and a 13.9% uplift in RevPAR
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Estate enhancing acquisitions Acquired Lovely Pubs – seven outstanding sites in village locations around Warwickshire and Worcestershire for £22.5m – an EBITDA multiple of 7.25x Acquired The White Swan, Twickenham – an iconic site in our heartland Strong Balance Sheet – funds available to pursue further, appropriate opportunities as they arise GROWTH THROUGH ACQUISITION
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Strong leadership building engaged teams, delighting customers and growing sales INVESTING IN OUR PEOPLE In FY2026 we will: Open the Fuller’s Kitchen Academy and further develop the Fuller’s Chefs’ Guild Continue with Lead Your Way to drive internal performance and promotion Recruit a further 200 apprentices Launch two new apprenticeships - Customer Service Level 2 - Head Chef Level 4 Continue to build pathways for internal promotion
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OUR PREMIUM CUSTOMER PROPOSITIONS Aligning our estate around our most valuable customer groups Destination London City Premium Neighbourhood Primary Customer Group Profile Upmarket Suburbanites Primary Customer Group Profile Young Urban Professionals | Tourists Primary Customer Group Profile Mature Premium Diner Joanna: 68 Bill: 72 Isobel: 29 Chris: 33 Tourists Phoebe: 33 Leo: 42
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Case Study: #OnlyInThePubUSING SYSTEMS TO OPTIMISE REVENUE Overview: Our Cask Ale campaign #OnlyInThePub was supported digitally across all our channels: Email Social Website Result: 14.1m impressions on Meta and Google resulting in the sale of an additional 30,000 pints of cask ale. 1.8 million customers on our contactable database - Can be contacted directly via targeted email or SMS 5.1 million total customers on our database - All contacts have engaged with us via a digital touchpoint within the last two years Exploring AI to enhance: - Customer sentiment understanding - Price strategy - Room rate management - Labour productivity
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Property: • Kerb appeal and gardens • Choice of furniture and colour palette People: • Service coaches and uniforms Proposition: • Prix fixe menus • Eco-comms and room compendiums • Loyalty scheme and digital comms Results for H2 FY25: • Covers up 4% • Food sales up 8.7% • Margin growth of 1.5% • NPS up by 2.5 points CASE STUDY: COUNTRY PREMIUM All elements combining to deliver outstanding results for our customers and the business
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TENANTED INNS An industry-leading Tenanted estate Pubs transferred from Managed in FY24, combined with sale of 37 non-core pubs in July 2024, contributed to Tenanted Inns EBITDA per pub rising by 23% Excellent generator of cash Premium customer base – economically resilient for our Tenants Maintaining both Managed and Tenanted business models retains flexibility of estate movement under our capital asset management framework
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CURRENT TRADING AND OUTLOOK Positive momentum continues with like for like sales in Managed Pubs and Hotels for the 10 weeks to 7 June 2025 rising 4.2% Planned capital investment programme of £30m for the full year to deliver further business-enhancing schemes Looking to AI to take our customer acquisition and digital strategies to new heights Further investment in our talented team members to build on our strong retention rates Changes to Board ensure continued strong leadership and long-term direction while aligning with our culture and values A confident outlook, with the backing of a strong Balance Sheet to support continued ambition to grow the business and deliver long-term returns for all our stakeholders.
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Appendix: Fuller’s Estate 30 Mar 2024 New Disposed 29 Mar 2025 Transferred* 11 June 2025 Total Fuller’s 370 8 (39) 339 (1) 338 Managed Pubs and Hotels 180 8 (2) 186 (1) 185 Tenanted Inns 190 - (37) 153 - 153 Number of bedrooms 1,015 19 (6) 1,028 - 1,028 *One Managed pub transferred to unlicensed properties
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Appendix: IFRS16 reconciliation Pre IFRS16 £m IFRS16 £m Post IFRS16 £m Revenue and other income 376.3 - 376.3 Operating costs (338.8) 2.9 (335.9) Adjusted operating profit 37.5 2.9 40.4 Finance costs (10.3) (3.1) (13.4) Adjusted profit before tax 27.2 (0.2) 27.0 Separately disclosed items 6.8 - 6.8 Profit before tax 34.0 (0.2) 33.8 Depreciation and amortisation 21.1 6.1 27.2 Adjusted EBITDA 58.6 9.0 67.6
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Appendix: A geographically balanced business 165 6 7 7 153 Managed Bel & The Dragon Cotswold Inns & Hotels Lovely Pubs Tenanted