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Yorkshire brewery Timothy Taylor’s has reported a significant decrease in profit despite a rise in sales, citing soaring utility costs and increased wages as key factors.
The West Yorkshire-based brewery, known for its popular beers including Landlord and Boltmaker (very popular with Londoners), experienced a £1 million decline in its pre-tax profit for the fiscal year ending September 30, 2023. Profits fell from £3.3 million to £2.2 million, even as revenue rose to £32.9 million, marking a nine per cent increase from the previous year.
Despite this rise in revenue, driven by increased demand for its draught beers, the company’s profit margins were squeezed by escalating costs and a sluggish British economy.
In a business review filed with Companies House, Timothy Taylor’s outlined the challenges it faced: “Due to the impacts of soaring utility costs resulting from the war in Ukraine, high rates of general inflation, and significant increases in labour costs, our operating profits were 47 per cent down on the prior year at £1.72 million (previously £3.24 million).”
The review highlighted the broader issues impacting the brewery and the pub sector: “After recovering well from the impact of Covid-19, the company and broader pub sector continue to be faced with inflated utility prices, significant input and labour cost increases, and the prospect of the return of full business rates for the on-trade.”
Timothy Taylor’s also emphasized the need to pass on these cost increases to customers to sustain its operations: “All of this in the context of a challenged British economy and consumer, and the need for us to recover cost price increases from our customers offset the reduced profitability; a necessity if we are to be able to continue to invest in the brewery and our high-quality beer brands.”
Despite the financial difficulties, the brewery has continued to invest in its future. It has made significant investments in sales and marketing support and upgraded plant machinery at its Keighley brewery to improve operations. Additionally, Timothy Taylor’s opened a new venue, Taylor’s on the Green, next to its brew house, enhancing its presence and engagement with customers.
