Greene King: What bad weather and smoking ban?
Greene King has announced its profits are in line with expectations despite the recent terrible summer and the introduction of the smoking ban.
Many licensees had complained of the worst summer on record with wet weather and the ban hitting profits.
However, Greene king says its like-for-like sales are actually up 2% on last year in its managed houses - if you exclude the World Cup - and up 1% in its tenanted pubs.
Greene King is pleased to confirm that its profit expectations for the full year remain unchanged, despite the recent unseasonal weatherA statement released today.
A statement released by the company today read: "Greene King is pleased to confirm that its profit expectations for the full year remain unchanged, despite the recent unseasonal weather.
"Implementation of the English smoking ban, which came into effect on July 1st, has, to date, been successful.
Greene King remains very well placed to meet the challenges, and to capitalize on the opportunities, presented by the ban.
"Like for like sales across the two managed pub divisions were slightly ahead of last year, and they were up 2% on an underlying basis, after excluding the impact of the last year's World Cup.
"In Pub Partners, the tenancy and lease division, total LFL sales growth was 1% in the period, maintaining the steady growth seen last year, despite the difficult trading conditions.
"Greene King's beer brands continue to outperform the UK beer market with Brewing Company own-brewed volumes, including Hardys & Hansons, up 10% in the period, led by double digit growth in Old Speckled Hen and Abbot Ale.
"In Scotland, the Belhaven business is on track to meet expectations for the year. Belhaven Best continues to grow strongly with volumes up 9% since the start of the financial year.
"On August 7th, Greene King completed the acquisition of Loch Fyne Restaurants, providing the company with greater access to the growing premium casual dining sector. "Integration of the business has begun and since the acquisition, Loch Fyne has successfully opened in Edinburgh, taking the total number of restaurants to 37.
"Since the beginning of the financial year, Greene King has bought back 12.4m shares for a total value of £125m, at an average price of 1007p per share. To date, the company's cashflow performance and balance sheet position remain healthy and in line with its forecasts."
