Poor weather worsens trade for Greene King
Greene King has reported a 0.9% drop in like-for-like sales due to poor weather weakening trade.
In the 18 weeks to 3 September like-for-like sales in its Pub Company managed arm were down 1.2% which it says is in line with expectations.
During the period, the Pub Company arm delivered returns in excess of 20%. Like-for-like net profit in Pub Partners was up 1.4% after 16 weeks.
Brewing & Brands own-brewed volume was down 0.5% against a UK ale market down 2.9%.
Greene King said most of the like-for-like sales decline can be attributed to value food. The report read: "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."
The group aims to deliver £45m of cost savings this year. It "remains cautious about the trading environment" and expects challenges of "weaker consumer confidence, increased costs and increasing competition".
Greene King was founded in 1799 and is headquartered in Bury St. Edmunds, Suffolk. 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.
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