Greene King has made the following Interim Management Statement for the 18 weeks to 1 September 2013.
Current Trading
“Like-for-like (LFL) sales in our largest business, Retail, are up 4.6% after 18 weeks, with the difficult comparatives of the Jubilee and the European football last year offset by the better summer weather. Food continues to improve its share of our business, with LFL sales up 5.7%, while LFL accommodation sales are up 6.0%, helped by an increase in customers taking their holidays in the UK. LFL drink sales are up 3.7%. Regionally, we have again seen our strongest growth in the South East of 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.
“In Pub Partners, average EBITDA per pub was up 5.8% after 16 weeks, while LFL EBITDA was up 2.7%.
“Brewing & Brands core brand volume was up 2.7% after 18 weeks, led by Old Speckled Hen, the UK’s no.1 premium ale brand, with growth of 7.9%. Total beer volume was up 1.5%.
“Our balance sheet and cash generation remain strong and in line with our expectations.
Outlook
“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.”