Greene King PLC PRE-CLOSE TRADING STATEMENT (6463K)

TIDMGNK

RNS Number : 6463K

Greene King PLC

12 April 2018

PRE-CLOSE TRADING STATEMENT

Pub Company like-for-like (LFL) sales for the 49 weeks to 8(th) April were -1.8%. The weather over the last 12 weeks impacted trading, particularly in our destination food-led pubs, and on an underlying basis, excluding the impact of snow, LFL sales in the year-t0-date were -1.2%. Both drink and accommodation LFL sales were ahead of last year.

Trading over Easter was strong with LFL sales up 2.8% against the Easter weekend last year, helped by strong sporting fixtures, especially football and boxing.

The targeted GBP10m investment we made in the second half of the year to strengthen our value for money, customer service and quality is starting to positively impact on trading, despite the continued challenging market backdrop.

We continue to reposition Pub Company to drive growth going forward; we will complete the exit from Fayre & Square by the financial year end; we opened nine new pubs over the year; and we invested core and brand conversion capex in 292 pubs.

After 48 weeks, LFL net profit in Pub Partners was -0.3% while own-brewed volumes in Brewing & Brands were -0.7%, ahead of the UK ale market* at -3.1%.

We remain on track to deliver targeted cost savings of GBP40-45m, we will have spent c. GBP160m in the full year in ensuring our estate remains well invested and our disposal proceeds are likely to be ahead of expectations at c. GBP120m following the sale of three high value leasehold pubs.

As a result, we expect full year profit before tax and exceptionals to be in the range of GBP240-245m.

With our high quality portfolio of pubs, excellent team, strong balance sheet and sustainable dividend, we remain well placed to withstand the external market challenges and deliver long-term value to our shareholders.

*BBPA May 2017 to February 2018

FOR FURTHER INFORMATION

 
    Greene King      Rooney Anand, chief executive      Tel: 01284 
     plc              officer                            763222 
                      Richard Smothers, chief 
                      financial officer 
    Finsbury         Alastair Hetherington              Tel: 0207 
                      Philip Walters                     251 3801 
 

NOTES FOR EDITORS

-- Greene King was founded in 1799 and is headquartered in Bury St. Edmunds, Suffolk. It currently employs around 40,000 people across its main trading businesses; Pub Company, Pub Partners and Brewing & Brands.

-- It operates 2,903 pubs, restaurants and hotels across England, Wales and Scotland, of which 1,758 are retail pubs, restaurants and hotels, and 1,145 are tenanted, leased and franchised pubs. Its leading retail brands and formats include Hungry Horse, Farmhouse Inns, Chef & Brewer and the Greene King Local Pubs estate. 82% of the estate is either freehold or long leasehold.

-- Greene King also brews quality ale brands from its Bury St. Edmunds and Dunbar breweries. Its industry-leading portfolio includes Greene King IPA, Old Speckled Hen, Abbot Ale and Belhaven Best.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 12, 2018 02:00 ET (06:00 GMT)