Greene King Reports Adjusted Profit Up Despite Impact Of Poor Weather

Greene-King-LogoGreene King has reported revenue was up 1.8% to £2,216.9m for the 52 weeks to 28 April 2019. Adjusted profit before tax was up 1.6% to £246.9m. Operating profit before exceptional and non-underlying items fell 1.3% to £368.2m while group Ebitda was down 0.9% to £482.0m.

Over the first eight weeks of the new financial year, the company said trading was affected by the poor weather and managed like-for-like sales were below last year’s strong comparatives.

For the new financial year the company expected to see cost inflation of between £10m and £20m. The company managed to mitigate £35m of costs in the reported period, limiting cost inflation to £14m. As previously reported, full-year managed like-for-like sales were up 2.9%. Its Pub Partners division saw like-for-like net income increase 1.5% while Brewing and Brands revenue was up 5.8%. The company said further progress had been made refinancing Spirit debenture since the start of the new financial year.

Nick Mackenzie, chief executive said “Greene King is a great business with a rich heritage, a high-quality estate, a strong portfolio of brands and 38,000 talented team members. Just two months into the job, I have been struck by the amazing pride and passion that our team members have for Greene King and I want to thank them for their continued dedication to providing great experiences for our customers and supporting local communities.

“The business delivered good results last year, regaining trading momentum in Pub Company and returning to market outperformance while fulfilling a strong cost mitigation programme and making further progress refinancing the Spirit debenture. The existing strategy we have in place has led the business through challenging times. I am looking forward to building on Greene King’s strong foundations with a focus on innovation, on developing our people and on customer service to further enhance our brands and deliver sustainable growth for our shareholders.”