Fuller Smith & Turner, the London-listed pub chain, reported a strong sales growth of 5.3% for the first 16 weeks of its financial year.
The company attributed this growth to major events such as the Euro football championships and the easing of inflationary pressures.
In June, Fuller's announced like-for-like sales had risen by 11% in the previous financial year.
Earlier in 2023, the company sold 37 pubs in the South East of England to Admiral Taverns for £18.3m and The Mad Hatter pub in Southwark for £20m.
These sales left Fuller's well-positioned to take advantage of acquisition opportunities while reducing its net debt from £133m to £92m.
Simon Emeny, the CEO of Fuller's, expressed his delight at the sales growth momentum and the easing inflation which will boost margins and profitability.
'although inflationary pressure has been easing, another large increase in labour costs has been signalled by the new government at a time when some customers might be tiring of price rises.'
Analysts at Peel Hunt
However, analysts cautioned about another potential large increase in labour costs from the new government amid concerns some customers might tire of price rises.
Fuller's share price target underwent an adjustment, moving up to 750p from its previous level of 725p.
Emeny further urged Prime Minister Keir Starmer to fulfill his commitment to overhaul the business rates system to aid economic recovery in sectors like hospitality.
The average company spends about fifty percent of its yearly rental expense on business rates; however, the relief from these taxes for retail, leisure, and hospitality firms remains in effect till 2023/24.
Labour pledged to replace the current system with a "new system of business property taxation" that would rebalance the burden and level the playing field between high streets and online giants.
The London-listed pub chain, Fuller Smith & Turner, saw its shares maintain a steady value of 715.6p in early trading following the announcement of their robust sales growth and optimistic forecasts.