FDBusiness.com

UK regional brewer and pub group Greene King has delivering another set of record results. Revenue increased by 9.4% to reach a record £1.14 billion for the 52 weeks to April 29 2012 and operating profit before exceptionals rose by 6.4% to a record £236.2 million. Profit before tax and exceptionals advanced by 8.6% to £152.0 million – another record.

Greene King’s Brewing & Brands division increased total volume, including third party drink sales, by 8.1% leading to revenue growth of 5.0% to £173.8 million. Operating profit slipped 0.3% to £33.0 million. Full year investment in Greene King’s core ale brands increased by 7.2%, leading to another year of strong market out performance for Brewing & Brands. Most significantly, the group re-launched Greene King IPA, the UK’s leading cask ale brand, including its first national TV advertising for five years. Greene King also increased its investment in innovation with the launch of a number of new brands and brand extensions including Old Golden Hen and Belhaven Black.

Greene King Retail, the group’s biggest and fastest growing business, generated 71% of total revenue and 63% of group profit in the year. At the year-end, there were 954 pubs, restaurants and hotels across the UK, split between Destination Pubs for its branded, food-led destinational sites and Local Pubs, for unbranded, more wet-led community sites. All sites are either branded or clearly segmented by customer occasion.

Rooney Anand, chief executive of Greene King, comments: “Consumer confidence remains weak and volatile. This is driving the UK consumer to seek out ‘everyday treats’, rather than ‘big ticket’ items. With no economic recovery on the horizon, we anticipate another tough 12 months ahead of us, although we are confident of benefitting from the exciting summer in Britain, including the Olympics in August, notwithstanding the unpredictable weather.”

He continues: “This predisposition to ‘everyday treats’ is helping the industry to deliver steady growth. In 2011, the £22 billion drinking out market grew 1.7% in value terms and it is expected to grow by 2.5% per annum between 2011 and 2015. The £42 billion eating out market was up 2.4% in value terms in 2011 and is expected to grow by 3.4% per annum between 2011 and 2015. And the £43 billion staying out market was up 2.9% in 2011 and is expected to grow by 0.1% in 2012.”