Greene King bucks tough market with record profits

Greene King has shrugged off the challenging market conditions seen by many operators to report record profits.

The Suffolk brewer increased its pre-tax profits by 10 per cent to £82.6m in the year to the May 2, on turnover up 3 per cent to £552.7m.

Beer sales were the star performer, up by 11 per cent as ale enthusiasts continued their love affair with brands including IPA, Abbot Ale and premium beer Old Speckled Hen.

Turnover in the Brewing Company increased by 11 per cent to £106.1m, with trading profit by 21 per cent to £16.1 million.

The Suffolk brewer's 1,600-plus pubs also outperformed the market, with average sales in each managed pub up by 7 per cent despite rising red tape costs.

Total managed turnover rose by 1 per cent to £331.6m, reflecting a decision to transfer more than 40 pubs to the tenanted Pub Partners arm of the business across the year.

Pub Partners notched up an increase of 3 per cent in turnover to £115m, with beer volumes up 2 per cent, wines and spirits by 11 per cent and soft drinks by 13 per cent.

Greene King chief executive Tim Bridge, said: "Our strategy has been consistent for many years and is founded upon three integrated trading divisions. Yet again all three have increased their turnover and trading profits.

"The first eight weeks of the new financial year have started well and we have every confidence that the quality of our assets and our people will continue to add value for our shareholders."