Record breaking Greene King feasts on greater consumer appetite
A marked upswing in consumer confidence has helped Suffolk UK food and pub business Greene King post record results for the 53 weeks to May 4.
Revenues of £1.3 billion were 8.9 per cent ahead of last time and pre-tax profit was 9.4 per cent higher at £173.1 million.
Retail like-for-like sales were up 4.1 per cent and food sales increased five per cent.
CEO Rooney Anand said reshaping its portfolio had created greater opportunities for growth and higher returns for the Bury St Edmunds-based brewing & leisure business.
Greene King has added 45 sites to its Retail division, taking the estate to 1,032 outlets; its Hungry Horse brand now has 226 sites.
On the brewing side of the business, the company’s volume share of the UK ale market increased 70 basis points to 11.3 per cent.
Anand said: “We have delivered four years of record results since the credit crunch and maintained this momentum over the last 12 months by giving our customers what they want, in the right way and at the right price.
“Profit growth of 12 per cent in our largest business, Retail, was driven by strong like-for-like sales growth and by newly-acquired sites. Pub Partners and Brewing & Brands also performed well. As a result, we achieved strong earnings, ROCE (return on capital employed) and dividend growth for the year.
“There are now clear signs that both the UK economic outlook and consumer confidence are improving, although consumers continue to spend cautiously. We see the pace of change in how people eat and drink out of home quickening so are shaping the business for the future to benefit from the opportunities these changes will bring.”