Greene King FY sales rise and dividend lifted, but backdrop uncertain

Pub operator Greene King posted a rise in adjusted profit but a drop in statutory profit for the year, as revenues grew and the company lifted its dividend.

In its preliminary results for the 52 weeks to 30 April, the group said adjusted pre-tax profit rose 6.6% to £273.5m on revenue of £2.2bn, up 6.9% from the year before. However, statutory pre-tax profit was down 2.6% to £184.9m, partly on the back of Spirit integration costs and partly due to historic tax settlements with HMRC.

Pub Co like-for-like sales in the period were up 1.5%, ahead of the market and driven by a good Christmas, a stronger fourth quarter and a strong performance from Greene King Locals.

Greene King, which acquired Spirit Pub Company in 2015, said the integration has completed a year ahead of schedule, with £35m targeted annual synergies delivered. The company lifted its dividend per share by 3.6% to 33.2p.

Chief executive officer Rooney Anand said: "Our performance has been achieved against a demanding backdrop of increased costs, weaker consumer confidence and increasing competition. While I expect these challenges to intensify over the next few years, Greene King has a very strong track record of delivery in tough market conditions.

"Using the scale that the Spirit acquisition has brought, we will continue towards our aim of being the best pub company in Britain. We will achieve this goal by ensuring we have the best brands, the best invested estate and the best people in the industry. We will target further market outperformance, in a growing market, supported by additional cost efficiencies, a robust balance sheet and strong cash generation to deliver long-term growth and attractive returns for our shareholders."

At 0810 BST, the shares were down 0.7% to 683.50p.