Greene King FY22 results show strong performance
Greene King has revealed its full year financial results for 2022.
Greene King has revealed its full year financial results for 2022, in which it says it has delivered a strong performance against a challenging consumer and wider macroeconomic backdrop.
The brewer and pub operator saw a recovery in sales, including in London, with trade returning to pre-pandemic levels by spring last year, as Covid-19 restrictions lifted.
Group revenue increased 62.2% to £2.176bn (prior period: £1.342bn) with revenue growth across all five divisions. An adjusted operating profit of £192.6m (prior period: £18.6m) was delivered, with a statutory operating profit of £249.2m (prior period: £63.8m).
Capex and business acquisitions for the year saw £242.3m spent (prior period: £144.5m), reflecting a period of increased investment across the business.
"This [performance] was only made possible by our hardworking and committed team members and tenants, who I would like to thank," says Nick Mackenzie, CEO of Greene King (pictured). "We also continued to invest in the business, which meant we made important strategic progress, particularly in new format and brand developments, targeted acquisitions and through driving our cultural transformation.
"Looking ahead, we expect the tough backdrop to continue, and we have planned for this. We now have a stronger platform to deliver sustainable growth against a strategy that is working and with a strong balance sheet. By focusing on the things we can control and supporting our team members and customers, we will continue to do what Greene King does so well, playing a meaningful role in supporting the communities we serve and leading the way in making our industry a better place to work."
Last year saw Greene King invest in Hickory’s, a regional American-style Smokehouse brand that the pub operator sees as having a significant opportunity for nationwide expansion.
There were targeted purchases of sites across the country, including premium Scottish restaurant Ubiquitous Chip by Metropolitan Pub Company.
Greene also created Venture Hotels last year, consisting of a collection of 39 hotels which previously traded within Destination Food Brands. Within its Local Pubs division, there were 14 core investments in the year to establish the platform for scaled investments across 2023 - in total 105 sites benefited from capital investment in the year.
Hive Pubs, its community pub model operated by franchisees, grew to 28 sites.
The group added Environment and Social as a strategy driver during the year, reflecting Greene King's increased commitment to putting environment and social purpose at the heart of the business.
This year will see Greene King go from five divisions to four: Greene King pubs, Destination Brands, Partnerships & Ventures, and Brewing & Brands.