Greene King has reported a 4.6% rise in like-for-like sales across its Retail arm in the 18 weeks to 1 September, with “difficult” comparatives of the Jubilee and Euro 2012 “offset by the better summer weather”, and says it reached the 1,000 site mark for its managed estate.
Food like-for-likes grew 5.7%, with like-for-likes in accommodation up 6%, “helped by an increase in customers taking their holidays in the UK”. Like-for-like drink sales were up 3.7%.
Growth was again strongest in South East England.
“Our retail expansion has made further progress, with the retail estate reaching 1,000 sites when the latest Hungry Horse, the Walls End in North Tyneside, opened on 28 August,” Greene King said.
In Pub Partners, average EBITDA per pub was up 5.8% after 16 weeks, while like-for-like EBITDA was up 2.7%. Brewing & Brands core brand volume was up 2.7% after 18 weeks, led by Old Speckled Hen, with growth of 7.9%. Total beer volume was up 1.5%.
Greene King said: “Our balance sheet and cash generation remain strong and in line with our expectations.”
The company said: “There appear to be cautious signs of optimism in terms of recent UK macro-economic improvements. In turn, we are seeing indications of growing consumer confidence, which is reflected in our strong start to the financial year. This performance has been helped by some one-off factors including the feel-good factor from continued British sporting success and the arrival of the Royal Baby, combined with much improved weather over the summer months.
“While the pace of the recovery remains uncertain, we believe that our strategy, tailored for the prevailing conditions, will continue to deliver improving returns, sustained earnings growth and attractive dividends for our shareholders. We look forward to another successful year.”
