19th Jan 2015 07:28
LONDON (Alliance News) - Greene King PLC Monday reported higher sales in both its brewing and pub operations over the key Christmas trading period, although the growth was lower than in the previous year and it said trading had been volatile either side of the holiday period and soft in recent weeks.
In a statement, the brewer and pub operator that's in the final stages of acquiring Spirit Pub Co, said total sales were up 5.9% in the 36 weeks to January 11, with like-for-like sales up just 0.6%.
Its like-for-like sales in the last six weeks were in line with the 5.0% growth it reported for the same six weeks a year earlier, it said. Retail like-for-like sales in the two weeks over Christmas and New Year were up 2.0%, down from the strong 6.4% growth it reported a year earlier, but trading was volatile either side of the holiday weeks and growth was just 0.6% in the last six weeks overall.
"Sales were encouraging in our retail business over the important two weeks covering Christmas and the New Year, despite a very tough comparative from last year and softer trading in Scotland, following the introduction of tougher drink-driving laws. Outside of those weeks, trading was more volatile, with the weeks before Christmas slightly down on the previous year and soft trading since the New Year," Chief Executive Rooney Anand said.
Like-for-like net income at its pub partners business was up 2.8% over the whole 36 weeks.
"All the key licensee health measures remain strong and anecdotal evidence from licensees has been positive regarding festive trading, particularly around food sales," it said.
Brewing and brands own-brewed volume was up 5.2% after 36 weeks, with growth of 3.7% over the last six weeks, it said. Growth continued to be driven by its take home and export channels, and by its Old Speckled Hen ale brand.
Greene King's acquisition of Spirit Pub Co will create the UK's largest managed pub business.
"The exact timing of the completion of the deal remains uncertain but we are working closely with the Competition and Markets Authority and expect the deal to complete by the end of the first half of 2015," Greene King said.
By Steve McGrath; [email protected]; @stevemcgrath1
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