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UK brewer and pub company Fuller Smith & Turner said profit for the full-year would be 'broadly' flat as costs associated with its beer business were materially higher than expected.
The company said it anticipated that profit performance for the full year ending 28 March 2020 would be broadly in line with the prior year on a comparable basis, resulting in adjusted pre-tax profit of about £31m.
The company said it had to carry the overheads associated with its beer business until the delivery of the transitional services agreement associated with the sale of the business to Asahi was complete.
The current level of overhead would continue until the TSA agreement concluded by May 2020, the company said.
The migration to a new enterprise resource planning system had also driven up costs, weighing on performance, it added.
Still, its managed estate saw revenue grow 5.2% and like-for-like sales grow of 2.3% for the 32 weeks to 9 November 2019.
'Looking forward our strategy is clear and remains on track as we look to deliver our growth plans for the future as a focused premium pubs and hotels business,' Fuller said.