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PUNCH SALES UP BUT PROFITS DOWN
Punch Taverns has announced a quarterly increase in earnings as drinkers enjoyed the July heatwave, but its pre-tax profits for the last year have slumped. (The Drinks Business)
Punch said that like-for-like income in its core business of about 3,000 leasehold pubs grew 0.4% in the three months to mid-August, versus a 2.4% drop during the year to August 17.
But annual pre-tax profits slumped by two-thirds to £17 million, as more poor performance in its “non-core” estate of 1,100 pubs and the cost of servicing its heavy debt burden continue to weigh.
The pub group also said that talks to reduce its huge debt of £2.4 billion were still ongoing. A previous attempt to cut its debt was rejected by senior bondholders in June, but the company said it is hopeful an agreement can be reached soon. Punch said: “While the process of engagement has taken longer than previously anticipated, the board believes that a consensual restructuring can be launched in the fourth quarter of the 2013 calendar year.”
View Full Article at Source (The Drinks Business)