Transformational Year For Greene King
Reflecting a continued good performance from the underlying business, and a 45 week contribution from the Spirit Pub Company acquisition, Greene King, the UK brewer and pub group, has reported a 57.6% increase in group revenue to £2.07 billion for the year ended May 1st 2016 with operating profit up 53.1% to £392.2 million, including £16.7 million of synergies achieved during the year. The operating margin was 18.9% – 0.6%pts lower than the previous year. Profit before tax and exceptional items grew 52.2% to £256.5 million, resulting in a 14.6% increase in adjusted earnings per share to 69.9p
Founded in 1799 and headquartered at Bury St Edmunds in Suffolk, Greene King currently employs around 44,000 people across its main trading businesses – Pub Company, Pub Partners and Brewing & Brands. At the year end, it operated 3,035 pubs, restaurants and hotels across England, Wales and Scotland, of which 1,823 were retail pubs, restaurants and hotels, and 1,212 were tenanted, leased and franchised pubs. Greene King is the UK’s leading cask ale brewer and premium ale brewer. Its industry leading portfolio includes Greene King IPA, Old Speckled Hen, Abbot Ale and Belhaven Best.
Total sales growth in Pub Company was 68.7% while operating profit grew by 56.8% to £299.2 million as 13 new pubs were opened during the year. Brewing & Brands achieved record revenue of £196.9 million and operating profit grew 9.7% to £32.7 million, as Greene King extended its share of the UK ale market by 40 bps to 10.5%.
Rooney Anand, chief executive of Greene King, comments: “It has been a transformational year for Greene King. We completed the acquisition of Spirit Pub Company and reached the milestone of £2 billion revenue. We have delivered growth across each of the three divisions, outperforming the market in a challenging environment, while making significant progress in combining the best of both businesses to build Britain’s best pub company.”
He continues: “I am pleased to report a strong start to the new financial year, although it is likely that consumer confidence will be affected by Brexit in the near-term. However, Greene King has a strong track record of performing well in challenging conditions, we are a resilient business with a talented team and a strong balance sheet, and we will benefit from the opportunities created by the Spirit acquisition. We are well placed to continue delivering value to our shareholders.”
