Preliminary results for the 52 weeks to 01 May 2016


 Group revenue
Adjusted1,2
profit before tax
Statutory
profit before tax
Adjusted1,2
earnings per share
Dividend
per share
Return on1 capital employed
£2,073.0m
+57.6%
£256.5m
+52.2%
£189.8m
+60.6%
69.9p
+14.6%
32.05p
+7.7%
9.4%
+10bps

Group revenue
Adjusted1,2
profit before tax
Statutory
profit before tax
Adjusted1,2
earnings per share
Dividend
per share
Return on1 capital employed
£2,073.0m
+57.6%
£256.5m
+52.2%
£189.8m
+60.6%
69.9p
+14.6%
32.05p
+7.7%

9.4%
+10bp

 

Highlights

Performance strength

  • Pub Company3 like-for-like (LFL) sales +1.5%; ahead of the market +1.3%4
  • Pub Partners LFL net income +2.7%
  • Brewing & Brands own-brewed volume (OBV) +2.9%; ale market share up 40 basis points to 10.5%

Financial strength

  • Operating cash flow +24.1%; net debt/EBITDA improved to 3.9x5
  • Group return on capital employed (ROCE) +10 basis points to 9.4%
  • Dividend per share up 7.7%, continuing our progressive dividend track record

Strategic & operational progress

  • Five strategic priorities outlined to drive future underlying growth
  • Record customer satisfaction scores in Greene King Pub Company; net promoter score (NPS) +7.9%pts
  • Greene King named Best Managed Pub Operator at the 2016 Publican Awards

Acquired Spirit Pub Company; integration & synergies ahead of plan

  • £16.7m of cost synergies delivered versus year one target of £12m
  • Tenanted and leased integrated ahead of schedule; integration of the managed business well under way
  • Five retail growth brands identified & optimisation programme commenced to deliver long-term growth

Strong start to the current year; Pub Company LFL sales +2.8%

Rooney Anand, chief executive officer:

“It has been a transformational year for Greene King. We completed the acquisition of Spirit Pub Company and reached the milestone of £2bn 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.

“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.”

Headline group results


52 weeks
2014/2015 2015/2016 YOY change
Total revenue £1,315.3m £2,073.0m +57.6%
Pub Company £1,000.7m £1,688.2m +68.7%
Pub Partners £121.9m £187.9m +54.1%
Brewing & Brands £192.7m £196.9m +2.2%
Group operating profit before exceptional items £256.2m £392.2m +53.1%
Pub Company £190.8m £299.2m +56.8%
Pub Partners £54.0m £85.3m +58.0%
Brewing & Brands £29.8m £32.7m +9.7%
Group operating profit £212.3m £366.3m +72.5%
Group profit before tax & exceptional items £168.5m £256.5m +52.2%
Group profit before tax £118.2m £189.8m +60.6%
Adjusted basic EPS before exceptional items 61.0p 69.9p +14.6%
Basic EPS 40.9p 64.4p +57.5%
Dividend per share 29.75p 32.05p +7.7%
Core6 capital expenditure £84.6m £137.5m +62.5%
Net debt £1,368.7m £2,048.4m +49.7%
Net cash flow from operations £197.3m £244.8m +24.1%
Free cash flow £55.7m £50.2m -9.9%

1Adjusted for exceptional items as detailed in note three of the financial statements
2Includes synergies and, where applicable, Spirit acquisition fair value adjustments
3Previously Retail 4Coffer Peach Business tracker
5Pro-forma, calculated by inclusion of Spirit management accounts data for the seven week pre-acquisition period. EBITDA is adjusted for exceptional items as detailed in note three of the financial statements
6Cash flow in respect of capital expenditure on pubs already owned

Download the Preliminary results 2016 PDF

Download the Preliminary results presentation 2016 PDF

For further information:

Greene King plc Rooney Anand, chief executive officer
Kirk Davis, chief financial officer
Tel:
01284 763222
Finsbury James Leviton
Philip Walters
Tel:
0207 251 3801

Information on Greene King plc is available at www.greeneking.co.uk; follow us on Twitter: @greeneking

There will be a presentation today for analysts and investors at 9.30am at Deutsche Bank, 1 Great Winchester St. London, EC2N 2DB. A live webcast of the presentation will be available at http://www.greeneking.co.uk/index.asp?pageid=43

The conference will also be accessible by phone: 0800 953 1287 UK Toll Free; +44 (0) 1452 560297 – Standard International Access. Conference ID: 38576466

Definitions

For definitions please refer to glossary of terms at the end of this document

Financial calendar

The group will publish its AGM trading statement on 9 September 2016