Pub retailer Greene King Plc. (GNK.L) Tuesday reported growth in retail like-for-like, or LFL, sales for the 18 weeks to September 2, despite the poor weather this summer. Overall, margins, profit, cashflow and balance sheet remain in line with expectations, the company added.
Greene King was founded in 1799. It has three main trading divisions: Retail, Pub Partners and Brewing & Brands. The firm operates around 2,300 pubs, restaurants and hotels across England, Wales and Scotland.
In an Interim Management Statement for the 18 weeks to September 2, the firm said LFL sales were up 5.1 percent. The Olympics had a minimal net impact on the overall retail performance.
In London, the City and the West End were generally quiet. In the suburbs, including Realpubs and Capital Pub Company sites, trading was stronger.
LFL food sales growth was 5.2 percent while LFL drink sales growth was 5.0 percent and room sales grew 4.9 percent.
In Pub Partners, after 16 weeks, average Earnings Before Interest, Tax, Depreciation and Amortization, or EBITDA, per pub was rose 3.5 percent, while LFL EBITDA in core estate slid 0.5 percent.
After 18 weeks, Brewing & Brands core brand volume slipped 0.9 percent. Both Old Speckled Hen and Greene King IPA, after its relaunch in April, achieved good volume growth. Total beer volume rose 0.4 percent.
''We believe underlying trading trends across the business have been maintained through the summer, despite the disappointing weather. This is encouraging for the rest of the year, although we expect consumer confidence to remain subdued,'' the company said.
The firm said it remains confident that its Retail growth strategy, combined with its focus on delivering value to customers will continue to deliver earnings and dividend growth.
The stock is up 2.4 percent at 577.00 pence in early morning trade.
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