Greene King, the leading pub retailer and brewer, has posted strong full year results, achieving record revenue and growth in like-for-like sales. The group’s retail revenue exceeded £1 billion for the first time, and group revenue increased 5% to £1.313 billion, with like-for-like sales growth in the retail business at 0.4%.
Other highlights include its Pub Partners business’ like-for-like net income growth of 3.5% and Brewing & Brands own brewed volume 4.2%. Retained business adjusted earnings per share growth was 9.2%, with the dividend growing 4.8% to 29.75 pence. Return on capital employed improved to 9.3%.
Creating a clear industry leader
The results follow a positive year for Greene King, which acquired Spirit Pub Company on 23 June 2015 for £774 million, creating the UK’s leading managed pub company. The deal allows Greene King to further realise its ambition to create a clear industry leader and grow its share of the UK eating and drinking out markets, diversifying the customer offer.
Rooney Anand, chief executive officer of Greene King, said, “It has been another excellent year of hard work and achievement and we have delivered strong sales and strong returns. Retail, our largest business delivered the highest revenue in the company’s history, while Pub Partners and Brewing & Brands continued to perform well.
“Strategically, we have made exciting progress with the recent acquisition of Spirit Pub Company, and by combining the best brands, people, locations, and processes, I am sure we will succeed in this competitive market for the long term. We are focused on delivering outstanding service and quality to our customers and we hope to continue our strong momentum and consolidate our leadership position in 2015.
Good underlying growth across all parts
“Greene King has delivered another record year in a challenging trading environment. We have delivered good underlying growth across all parts of the business with Retail generating sales of over £1bn for the first time. Underlying earnings growth of over 9% has enabled a dividend increase of 4.8%, reflecting our confidence in the strength of the business and its prospects for future growth.
“We have also completed a successful five-year strategic plan, surpassing our goals, as we delivered significant progress, changed the business mix and better positioned the company for the future.
“We now enter another exciting new phase in the company’s history, with the acquisition of Spirit. We warmly welcome Spirit’s employees and its shareholders to Greene King. The acquisition will further strengthen our platform to deliver sustainable, long-term success for the benefit of our customers, our employees and our shareholders.”
Financial & operational highlights
- Underlying revenue +5% (52w basis) to £1,313m
- Underlying operating profit +3.8% (52w basis) to £254
- Underlying PBT +6.9% (52w basis) to £167m
- Underlying adjusted EPS +9.2% (52w basis) to 60.4p
- Dividend +4.8% to 29.75p
- ROCE now 9.3%
- Retail like-for-like (LFL) sales +0.4%; Pub Partners LFL net income +3.5%; Brewing & Brands own-brewed volume (OBV) +4.2%
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