Greene King PLC AGM TRADING STATEMENT FOR THE 18 WEEKS TO 03 SEPT (1674Q)
September 08 2017 - 1:00AM
UK Regulatory
TIDMGNK
RNS Number : 1674Q
Greene King PLC
08 September 2017
Press release
LEI: 213800R9N5F2WRMGTR50 08 September 2017
AGM TRADING STATEMENT FOR THE 18 WEEKS TO 03 SEPTEMBER 2017
At its AGM today, Greene King will make the following trading
statement for the 18 weeks to 03 September 2017.
In the first 18 weeks of the year, Pub Company like-for-like
(LFL) sales were -1.2%, against a market which declined -0.7%*.
Excluding Fayre & Square, which is being rebranded during this
financial year, LFL sales were -0.9%. In the first ten weeks, LFL
sales were in line with our expectations and broadly in line with
last year, despite the tough comparisons from Euro 2016. However,
since the second half of July, when the weather worsened, trading
weakened.
Over the course of the year so far, most of the LFL sales
decline can be attributed to value food, although more recently we
saw some softening across other segments. We are continuing to
address the challenges of the value food sector through measured
capital investment to upgrade and reposition pubs and through
selective disposals.
We are strengthening our customer offer with both our net
promoter scores and our food quality scores across Pub Company
continuing to improve this year, while our brand conversion
programme is delivering returns in excess of 20%.
In terms of costs, our programme to deliver GBP45m of cost
savings this year, including further cost synergies from the Spirit
acquisition, is on track. The scale of our cost saving programme
helps to reduce the impact of weaker than anticipated sales through
limiting margin declines from unprecedented industry cost
pressures.
Our other two businesses, Pub Partners and Brewing & Brands,
continue to deliver strong returns and cash for the company. LFL
net profit in Pub Partners was up 1.4% after 16 weeks, with the
impact of MRO in line with our expectations. In Brewing &
Brands, own-brewed volume was down -0.5% against a UK ale market
down -2.9%** and a cask ale market down- 7.0%**.
We remain cautious about the trading environment and expect the
challenges of weaker consumer confidence, increased costs and
increasing competition to persist over the near term. In the longer
term, utilising the benefits of the Spirit acquisition, our brand
conversion and cost saving programmes, our robust balance sheet and
our strong cash generation will be important levers to help deliver
competitive advantage, growth and attractive and sustainable
dividends for our shareholders.
*CGA Trading Index 16 weeks to 20 August 2017
**BBPA Three months to July 2017
FOR FURTHER INFORMATION
Rooney Anand, chief executive
Greene King officer Kirk Davis, chief
plc financial officer 01284 763222
Finsbury Philip Walters 0207 251 3801
NOTES FOR EDITORS
-- Greene King was founded in 1799 and is headquartered in Bury
St. Edmunds, Suffolk. It currently employs over 40,000 people
across its main trading businesses; Pub Company, Pub Partners and
Brewing & Brands.
-- At the end of April, it operated 2,924 pubs, restaurants and
hotels across England, Wales and Scotland, of which 1,769 were
retail pubs, restaurants and hotels, and 1,155 were tenanted,
leased and franchised pubs. Its leading retail brands and formats
include Greene King Local Pubs, Hungry Horse, Flaming Grill,
Farmhouse Inns and Chef & Brewer.
-- 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.
"Time Well Spent"
This information is provided by RNS
The company news service from the London Stock Exchange
END
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