Like-for-like sales at Greene King’s pub company were down 1.2% in the 52 weeks to April 29, which the company is blaming on snow.
Across the company, adjusted profit before tax was £243m, down 11.2%. Tenanted like-for-like profit was up just 0.4%, while brewing and brands revenue rose by 7.4%.
The company list strategic priorities as:
- improving underlying sales growth in the pub company
- developing a more efficient and effective organisation
- further strengthening the capital structure
Chief executive, Rooney Anand, said: “We made good progress improving the performance of the business during the second half of the year, despite a challenging trading environment.
“Our investment to improve the customer experience in our pubs and the focus on our strategic priorities are beginning to pay off. Positive momentum, both in terms of trading and customer satisfaction, is returning to our business.
“While it is still early days, this positive momentum has continued into the new financial year, aided by good weather and popular sporting events. We remain focused on continuing to drive top-line growth, developing a more efficient organisation, and further strengthening our capital structure to deliver long-term value creation for our shareholders.”
He added: “We expect the trading environment to remain challenging for some time, but we strongly believe people will continue to choose the great British pub as the place to enjoy time with friends and family.”
Comment: Fiona Cincotta, senior market analyst at www.cityindex.co.uk
“The warm British weather and start of the Word Cup have provided the boost in footfall that management was hoping for.
“The English team hasn’t slipped up yet, so there’s potential for punters to make plenty more trips to the pub, starting with the highly-anticipated match against Belgium today.
“Greene King would have known what was coming when it invested £10m in the second half of the financial year to improve its price and customer service offering. If all goes to plan, customers will be so impressed they’ll stick, even after the very final whistle blows in Moscow on July 15.
“Underlying challenges will remain: consumer confidence is fragile, competition is intense, and the British weather is never nice for long. But cash generation remains strong and costs are being decently managed, making the dividend look safe for at least another year.”
