Greene King hails 'strong start' to year but warns over Brexit impact
Pub company Greene King said it has made a strong start to the year, with like-for-like sales growth of 1.7% in the 18 weeks to 4 September, but sounded a cautious note on the impact of the Brexit vote.
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Greene King attributed its strong start to the European Football Championships and better weather. In Pub Partners, LFL net income was up 4.5% after 16 weeks, while in Brewing & Brands, own-brewed volume fell 0.5% over the same period.
The group said it continued to make good progress with the integration of Spirit, including the delivery of further planned synergies and over a quarter of its managed pubs now operating with the ‘best of both’ IT system.
“As expected, uncertainty surrounding the UK's future withdrawal from the European Union has translated into a softening of some economic indicators and a reduction in consumer confidence. While the broader implications remain unclear, a number of recent industry surveys have flagged risks to leisure spend and we are alert to a potential tougher trading environment.
“With this in mind, we will continue to focus on delivering great value, service and quality to our customers. Greene King has a track record of success in challenging trading environments and our strong balance sheet and enhanced opportunities following the Spirit acquisition will help limit any potential impact from prolonger uncertainty in the environment.”
Greene King said it remains confident of delivering another year of strategic and financial progress.