Greene King: leased pub sector stabilising
The average profit per leased pub in the Greene King estate fell 3.4% on last year but has begun to stabilise.
The super regional brewer and pub operator delivered a "strong" performance in its managed division and brewing operations for the 49 weeks to 11 April.
And Earnings Before Interest, Tax, Depreciation and Amoritisation (EBITDA) per tenanted pub in its Pub Partners division for the second half of the year were broadly level on last year.
"We now have 90% of the estate on substantive agreements and we expect targeted licensee support to be below £6.0m in this financial year," said chief executive Rooney Anand.
Like-for-like sales in its managed division rose 3.6% fuelled by continued food sales growth with Hungry Horse and Old English Inns the star performers. Margins are expected to be in line with last year.
Own brewed volumes are up 3.9% against an on-trade beer market down 6% and a cask ale market down 3%.
In Scotland, its managed Belhaven pubs delivered "industry-leading" like-for-like sales growth of 5.6%. Underlying tenanted profit per pub is level on last year. Belhaven Best volumes rose 15.4%.
Anand said its acquisitions were trading ahead of expectations. It has now spent £86m (42%) of the £207m it raised through a rights issue last year to buy pub freeholds and buy back debt.
"We are still cautious for the remainder of 2010 as election uncertainty, rising taxes, public sector cutbacks and fragile consumer confidence may continue to limit consumer spending," said Anand.
"Nevertheless, we are confident we can meet these challenges and that the strength of our consumer offer in terms of value, service and quality, in combination with our high quality pub estate, retail and beer brands, will ensure we continue to deliver sector-leading performance."
