Greene King Retail has reported like-for-like (LFL) sales +2.0%, Spirit Managed LFL sales +1.2%, Pub Partners LFL net income +2.4% & Brewing & Brands own-brewed volume (OBV) +3.6%. Rooney Anand, Greene King chief executive officer, comments:
“It has been a strong first half, with the Greene King business strengthening and significant progress made in the Spirit integration. Like-for-like sales growth in Greene King Retail improved during the half and both Pub Partners and Brewing & Brands delivered profit growth and margin expansion.
We completed the acquisition of Spirit Pub Company and, by combining the best of both companies, made good progress in capturing value from the acquisition and creating the UK’s leading pub hospitality company.
We believe we have the best portfolio of retail pub brands, the best pub assets and the most talented team which, when combined with the strong contribution from synergies and the benefits of our enlarged scale, will ensure we continue delivering value to our customers and our shareholders.”
Interim results for the 24 weeks to 18 October 2015
| Total group – 24 weeks | H115 | H1161 | Change |
| Total revenue | £614.9m | £917.7m | +49.2% |
| Operating profit2 | £123.3m | £180.2m | +46.1% |
| Profit before tax2 | £82.6m | £121.3m | +46.9% |
| Statutory profit before tax | £72.0m | £84.9m | +17.9% |
| Adjusted basic earnings per share2 | 29.9p | 34.5p | +15.4% |
| Statutory basic earnings per share | 29.5p | 24.9p | -15.6% |
| Dividend per share | 7.95p | 8.45p | +6.3% |
| Greene King – 24 weeks | H115 | H116 | Change |
| Total revenue | £614.9m | £648.4m | +5.4% |
| Operating profit2,3 | £123.3m | £128.3m | +4.1% |
| Profit before tax2,3 | £82.6m | £87.5m | +5.9% |
1Spirit contribution from date of completion: 23 June 2015. Includes fair value accounting adjustments and synergies
2Adjusted for exceptionals as detailed in note 3
3Greene King numbers exclude synergies in the existing Greene King business
Highlights
- Revenue and profit growth across all divisions; adjusted earnings per share up 15.4%
- Greene King Retail like-for-like (LFL) sales +2.0%, Spirit Managed LFL sales +1.2%, Pub Partners LFL net income +2.4% & Brewing & Brands own-brewed volume (OBV) +3.6%
- Dividend per share up 6.3%; maintaining long-term growth record
- Greene King return on capital employed (ROCE) up 20 basis points to 9.4%
- Record customer satisfaction in Greene King Retail; Net promoter score (NPS) +7.1%pts
- Completed acquisition of Spirit Pub Company; integration ahead of plan
- Expect to outperform initial cost synergy guidance; target raised to £35m
- Brand optimisation: Retail growth brands & investment programme identified to deliver long-term growth
- Tenanted and leased fully integrated, ahead of schedule
- Retail business to be based in Burton
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