10th Sep 2014 06:54
LONDON (Alliance News) - Pub company Greene King PLC Wednesday said its like-for-like sales in the first 18 weeks of the year showed muted growth against tough comparatives from last year and a disappointing World Cup this year, though it expects further improvement in the rest of the year as momentum for its Pub Partners and Brewing & Brands businesses continues.
The FTSE 250-listed company said like-for-like sales in its retail arm were up 0.4% in the first 18 weeks. That was against a backdrop of tough comparables from a strong summer last year and a disappointing football World Cup for the company this year, it said.
It also said that while there is evidence of a growing recovery in the UK economy, consumers remain cautious on their spending. In response to that trend, Greene King said it has worked to protect the profitability of its retail arm by ensuring it does not over-invest in tactical, short-term sales building initiatives.
In its retail business, its accommodation operation performed well, and it saw particularly strong trading in the premium London pubs business, Metropolitan, and in its Farmhouse Inns carvery unit.
The group has opened a net five additional sites in the year-to-date, taking its total estate to 1,037 sites, and said it has a healthy pipeline of new sites in place. It said new site openings are expected to be weighted to the second half of the year.
Its Pub Partners business saw like-for-like net income rise 3.7% in the first 16 weeks, while its Brewing & Brands business saw its own-brand volume rise 6.2% in the first 18 weeks, pushed higher by strong growth for its Old Speckled Hen ale brand.
The group said it anticipates an improvement in like-for-like retail sales this year and expects the momentum for its Pub Partners and Brewing & Brands businesses to continue in the full year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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