Greene King: managed pub sales continue growth

The Suffolk-based brewer and operator reported a like-for-like increase of 4.3% in the last 10 weeks in its managed Greene King Retail division despite a tough comparable with a period which included the football World Cup last year.

The sales growth in managed houses continues to be fuelled by food sales with Like-for-likes up 4.2% for the 18 weeks and 4.7% in the last 10 weeks.

Its two acquisitions, Cloverleaf and Realpubs, are said to be “trading strongly”. Yesterday, it declared its intention to delist Capital Pub Company from AIM and compulsory purchase the remaining 5.3% of share stock.

It will now begin to integrate Capital and expects to achieve synergies of at least £2m.

At its Pub Partners tenanted division, Earnings Before Interest Tax Depreciation and Amoritisation (EBITDA) was up 2.4% after 16 weeks with like-for-like EBITDA down 1%. Like-for-like EBITDA in its core estate is ahead of last year.

Greene King’s own brewed beer volumes are up 1.8% with 5% growth in the last 10 weeks — compared to a UK ale market down 8% in the last quarter. Old Speckled Hen is “performing particularly well”, it said.

Its margins, profit, cashflow and balance sheet remain in line with expectations.

However, it said the trading outlook “remains uncertain as UK consumers are having to cope with rising costs, falling disposable income and the prospect of increased unemployment”.

It added: “Overall, however, we are confident that our Retail expansion strategy, and the consistent delivery of excellent value, service and quality to our customers across each of our businesses, will enable us to deliver growth, further increase our market share and continue to deliver value to our shareholders.”