Greene King reports strong managed growth
Greene King has reported that its managed division is enjoying like-for-like sales growth of 4.6%, with food like-for-likes up 8.1% in the 17 weeks to 30 August.
Both its managed divisions, Destination and Local Pubs are in healthy growth, with food-led pubs performing best. Like-for-likes in its Belhaven managed division are up by +10.9%.
The company said it expected like-for-like LFL growth to moderate due to tougher year-on-year comparatives in the second half of the financial year.
Operating margins within the managed division are less than 100 basis points lower than last year, in spite of the cost pressures still being experienced in the first half of the financial year.
The Pub Partners tenanted business has seen an improved volume performance and the positive impact of non-core disposals partially offset by higher licensee support around the company's 'Crunch Time' initiative. After 16 weeks, average EBITDA per pub is -7.2%.
Greene King stated: "Interest in our tenancies from prospective new licensees has picked up and we have reduced the number of closed pubs from 30 at the year-end to 15.
"Once again, the tie is being investigated by the OFT and we are fully participating in this investigation.
"At the same time, we continue to investigate ways to further improve licensee profitability via our industry-leading Code of Practice."
Greene King's brewing division saw own-brewed volumes up 14.8% compared to a UK beer market down 6.0% in the three months to July, according to the British Beer and Pub Association.
The company added: "In brewing company, the growth has been driven by strong performances across its core brands in both the on-trade and the off-trade, particularly the UK's leading premium ale brand, Old Speckled Hen."
