Greene King Shows Resilience
UK regional brewer and pub operator Greene King continues to show resilience, reporting a 7.1% increase in profit before tax and exceptional items to £82.7 million on revenue up by 7.3% to £566.2 million for the 24 weeks to 14 October 2012. On the retail side of the business, sales rose 10.9% during the period and by 4.3% on a like-for-like basis. Retail profit rose by 17.4% with the margin increasing 120 basis points to 20.4%.
Despite cost challenges in its Brewing & Brands business, Greene King maintained brand investment in the division, which increased revenue by 2.2% and market share by 50 basis points to 9.9%.
Rooney Anand, Greene King chief executive officer, comments: “Our team has delivered another strong trading performance driven by 17% profit growth in our retail division. We have continued to focus on providing excellent value, service and quality to our customers, while improving productivity and keeping tight control of costs. This has led to strong sales and profit growth, increased cashflow, improved returns and a stronger balance sheet.”
He adds: “While we continue to see a challenging environment for the UK consumer, our strategy has been tailored for these conditions – we provide our customers with ‘everyday treats’ and value for money. We are confident we can generate further success and deliver sustainable earnings and dividend growth for our shareholders.”
