Greene King has achieved a group revenue increase of 62.2% to £2,176m for the 2022 financial year, up from £1,342m in 2012, with growth across all five of its divisions.
The pub company and brewer reported adjusted operating profit of £192.6m for the full year period, compared to £18.6m the prior year.
Statutory operating profit was £249.2m for the year, vs. £63.8m in 2021, with free cash flow increasing from £7.2m to £13.1m in the year.
The group said it saw a recovery in sales during the 52 weeks to 1 January 2023, including in London, with trade returning to pre-pandemic levels following the lifting of Covid restrictions last spring.
Events such as Platinum Jubilee weekend, women’s football Euros, and men’s football world cup drove event-led demand, it said.
While it expects the tough operating environment to continue, the group said it had planned for this and that 2023 would be another year of investment.
In 2022 Greene King invested £242.3m in its brands, new pub and dining formats and acquisitions.
The group said that following proactive steps to reduce costs, through successful energy heading and a focus on efficiencies, it was now on a strong platform overall with its balance sheet continuing to deliver sustainable growth.
The group also refinanced its balance sheet by £915m, and repaid its A5 Spirit debenture and A5 Greene King securitisation bonds to maximise the strength and flexibility of the balance sheet and maintain the business’s robust capital structure.
Among its operational highlights were the acquisition of Hickory’s – the American-style smokehouse restaurant business – which it said offers a significant opportunity for nationwide expansion; targeted purchases of sites across the country, including premium Scottish restaurant Ubiquitous Chip by Metropolitan Pub Company; and the creation of Venture Hotels consisting of a collection of 39 hotels which previously traded within Destination Food Brands.
Within Local Pubs, it completed 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, it said.
Looking ahead, Greene King said it remained confident in its ability to continue to deliver outstanding customer experiences and that it expected 2023 to be another year of significant investment focused on the continued optimisation of the core estate, improving digital capability, operational efficiency, and further progress in delivering its environmental and social commitments.
As previously announced, Greene King has realigned its group divisional structure for FY23, supporting its long-term brand structure, simplifying the business, and enabling the continued development of the Ventures and franchise businesses.
It has moved from five divisions to four: Greene King pubs, Destination Brands, Partnerships & Ventures, and Brewing & Brands.
Nick Mackenzie, CEO, Greene King, said: “Greene King delivered a strong operational and financial performance during 2022 despite the challenging macroeconomic backdrop with progress made in all our businesses.
“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.”
