29th Nov 2018 09:18
LONDON (Alliance News) - Brewer and publican Greene King PLC on Thursday said it is working closely with suppliers to safeguard supplies in the event of a no-deal Brexit, as it reported a 3.2% rise in half-year profit on the back of good summer weather and the football World Cup.
The Bury St Edmunds, Suffolk-headquartered company recorded pretax profit of GBP127.7 million for the 24 weeks to October 14, up from GBP123.7 million in the comparative year-ago period, on revenue of GBP1.05 billion and GBP1.03 billion, respectively.
First half profit, before tax and exceptional items, increased to GBP128.2 million from GBP127.9 million. Profit also benefited from a reduction in interest costs from the Spirit debenture refinancing programme, following the debt taken on as part of the 2015 acquisition of Spirit Pub Co for GBP773.6 million.
The core Pub division delivered total sales of GBP850.3 million for the first half of the current financial year - accounting for 81% of group revenue - up 1.6% year-on-year due to higher drink volumes. Operating profit for the division, however, was down 2.0% year-on-year to GBP134.2 million due to cost inflation, implementation of a investment programme in the second half of last year, and phasing of cost mitigation plans during the year.
Greene King said its cost-savings programme remains on track and the company still expect to offset GBP30 million to GBP35 million of the GBP45 million to GBP50 million gross cost inflation forecast for the year.
The strong momentum in Pub Company has been maintained since the period end with like-for-like sales up 2.9% after 30 weeks and Christmas bookings well ahead of last year, the company added.
The company maintained its interim dividend per share at 8.8 pence each.
Shares in the company were trading 5.4% higher at 534.90p each.
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