Greene King sees 16 per cent hike in first half sales

Contributions from Belhaven and to a lesser extent Hardys & Hansons helped Greene King's first half results, the Suffolk brewer revealed today.

The group's overall turnover for the 24 weeks to October 15 2006 rose 16 per cent to £419.2m, while pre-tax profits grew by a fifth to £67.1m.

Greene King's 740-odd managed pubs saw operating profits up three per cent to £51.9m, despite a one per cent dip in revenue to £241.3m, primarily driven by transfers from managed to tenanted operations. Operating margins were marginally up at 21.5 per cent.

The group's tenanted division, comprising 1,364 pubs, saw turnover up three per cent to £72m, with operating profits of £33m, up 11 per cent. Margins were up 3.1 percentage points to 45.8 per cent.

Belhaven's relative operating profit growth was eight per cent, with brewing volumes up five per cent on the previous period.

The Hardys & Hansons' acquisition, which Greene King completed in October, is expected to generate synergies of around £5m, of which £3m will come in the first full year. "Capture of these synergies is on track", the group said.

"Revenue of £9.2m and operating profit of £1.9m represents only six weeks of contribution. Their results over the period since acquisition have been in line with our projections," it added in a statement.

Rooney Anand, Greene King chief executive, said: "This has been another very strong first half year, with encouraging organic growth and profit conversion. We have benefited from our acquisition of Belhaven, which is proving a great addition to Greene King.

"In the second half there will also be a full contribution from Hardys & Hansons, which is performing well, and integration is on track."

He added: "Trading in our divisions remains in line with our expectations. In the 30 weeks to 26 November, like-for-like sales in Pub Company and Pub Partners were up by 3.5 per cent and one per cent respectively on the previous year.

"Brewing Company's own-brewed volume remains down on a year ago, while total beer sales are up, and Belhaven Best volume remains 5 per cent ahead. Belhaven's 30-week retail sales are 2.8 per cent down on last year."