Managed pubs fuel Greene King confidence

Greene King, the Suffolk based brewer and pub operator, has unveiled a 4.4% like-for-like sales increase at its managed pubs division for the 18 weeks to 5 September.

Like-for-like sales at its Scottish based Belhaven managed pubs are also up 3.3%. The sales growth has been fuelled by a 8.6% increase in like-for-like food sales across the managed estate.

"This strong sales growth and focus on food has not been at the expense of margins, which are slightly ahead of last year," it said.

Greene King also revealed that despite the "challenging" conditions in the tenanted and leased sector, average Earnings Before Interest Tax Depreciation and Amoritisation is up 0.7% for the 16-week period.

"Looking ahead, we will continue to improve the overall quality of our estate and retailing skills of our licensees, and we will shortly be launching our new Code of Practice following its accreditation from the British Institute of Innkeeping," it said.

Own brewed volumes of beer were down 4.6% following a "very weak" July and August and against a comparative growth of over 10% in the same period last year. Total beer volumes are 0.3% ahead of last year and Belhaven Best volumes are 3% up.

"Overall, operating profit, cashflow and the balance sheet are strong, and in line with our expectations," said chief executive Rooney Anand. "The pubs acquired over the last year are trading very well and investment in our existing brands and formats is delivering healthy returns.

"The economic and consumer environment remains uncertain as a number of significant headwinds, including public sector cuts, benefits reform and the impending VAT rise, are likely to affect future household spending.

"However, we are confident of delivering another successful year for our shareholders, in which we will continue to expand our retail businesses and to invest in our brands to generate market share gains and deliver industry out-performance."