Brewery returns to profitability amidst continued industry challenges

North Yorkshire-based brewery T&R Theakston has reported a return to profitability in its latest annual report for the year ending 31 December 2022.

The family-controlled business, which has been brewing beers in Masham for almost 200 years, recorded a pre-tax profit of £18,000 for the period, compared with a £2,000 loss in the previous year.

It comes as the business saw turnover increase by 14% to £6.7m in the same period.

T&R Theakston says 2022 began with the hangover of the Omicron variant of Covid-19, before further business challenges emerged following Russia’s invasion of Ukraine and subsequent inflation contributing to the current cost of living crisis.

Russia’s invasion had a direct impact on the business, which decided to immediately cease all trade with the country – previously its largest export market.

Simon Theakston

Simon Theakston, joint managing director, said: “We’re pleased to report not only our return to profitability, but also that as custodians of the Theakston heritage, we continued to produce the high-quality beers that our customers in both the on and off trade markets have come to expect.

“As a business with almost 200 years of experience, we have seen our share of challenges, from wars to recessions, and most recently a pandemic.

“Throughout all these times however, we have remained steadfast in our belief that our beer and the British pub as an institution, are about much more than just a pint, they’re about bringing people together and acting as the focal points of the community in both the good times and bad.”

The company adds that it has worked to minimise price increases to support its pub customers, who are caught between increased supplier costs, increased running costs of their own and consumers affected by inflationary pressures in the economy.

Looking to the future, the business notes it has changed its sales model significantly by broadening its supply routes to the on trade and exploring new opportunities within the wider drinks market.

Theakston said: “With a healthy balance sheet and secure financial arrangements, we remain focused on growing our revenue and are excited about some of the upcoming opportunities to forge new partnerships and bring innovative new products to market.

“We have made a good start to the year and, as a result, the board of directors is confident that as trading conditions continue to improve and the economy stabilises, we will see a steady improvement towards pre-pandemic levels of profitability.”