Tough comparatives for Greene King in latest results

Tough comparatives for Greene King in latest results

Greene King’s like-for-like sales were down 1.8% for the 18 weeks to 1 September 2019, reflecting the tough comparatives of last year’s successful World Cup and good weather.

However, like-for-like sales in its Pub Company grew 1.5% over the last seven weeks and, on a two year basis, were up 2.4%.

Like-for-like net income in Pub Partners was down 4.2% for the first 16 weeks, driven by softer beer sales following last year’s comparatives. In Brewing & Brands, total beer volumes were down 6.5% for the first 18 weeks and own-brewed volumes were down 7.9%.

“We are on track with our cost mitigation programme and expect to limit net inflation this financial year to £10-20m,” reads the Greene King statement. “We also continue to make progress on our refinancing programme and in June we prepaid the remaining £93m Spirit A4 bonds. We remain on track with our disposal programme and expect to dispose of 85-95 pubs this year, generating disposal proceeds of £45-55m from which we will fund the opening of eight new pubs.”

On 19 August 2019, Greene King announced a recommended cash acquisition for the company by CK Noble (UK) Limited.