Suffolk brewer and distiller Adnams slashed operating losses in half last year, but remains in an “unsustainable” amount of debt, its chair has said.
Adnams grew sales by 3% to £68.1m in the 12 months ended 31 December 2024, while adjusted EBITDA nearly doubled from £600k to £1.2m.
Operating losses reduced from £2.5m in 2023 to £1.2m after improved trading performance and the disposal of “non-core assets”. In December, Adnams said it was no longer pursuing a sale of its business to pay off its debts, and would instead look to sell off more pubs and property.
Despite some disposals, however, Adnams’ net bank debt reduced by just £600k to £15.3m in 2024.
“The company’s current level of indebtedness is unsustainable and we have therefore embarked upon a programme of asset disposals, the proceeds of which are being used to reduce the company’s borrowings,” said Adnams chair Simon Townsend. “The asset disposal programme will continue until such time as the company’s earnings are sufficient to support its debt.”
Alongside debt reduction, Adnams was implementing a commercial turnaround plan to “improve revenue growth and profitability”, the supplier said.
“We are driving our underlying business performance to enable sufficient free cash to be reinvested in the business and facilitate the reinstatement of dividends for shareholders,” Townsend added.
Off-trade ale sales were a performance highlight in 2024, Adnams said, with volumes growing by 0.3% set against a category down 6.2% on the year prior.
On-trade ale volume declines of 5.8% were worse than the market (3.7%), however.
Adnams’ low/no pale ale Ghost Ship 0.5% had seen “considerable success”, with volumes up 8.5% in 2024.
Overall brewed volumes, meanwhile, increased by 12.5% in the year, largely driven by a 53% increase in contract spirits volumes.
Adnams continued to face “a number of headwinds in 2025, including unreliable consumer confidence, questionable economic growth and the imminent impact of increases in employment costs”, Townsend said.
“Businesses such as Adnams are receiving no positive support whatsoever from the government, despite our role as an important employer at the heart of the communities which we serve.
“It is clear that the actions we are taking, and will continue to take, to improve profitability and reduce borrowings are the essential elements of a self-help story.”
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