INTERIM RESULTS FOR THE 24 WEEKS TO 16 OCTOBER 2016
These are the interim results for Greene King and the total group for 24 weeks until 16 October 2016.
|Group revenue||Adjusted profit before tax1||Statutory profit before tax||Adjusted earnings per share1||Basic earnings per share||Dividend per share||Return on capital employed|
- Record revenue of £1,044.3m.
- Operating profit before exceptional items1 of £203.7m; all divisions in profit growth.
- Pub Company like-for-like (LFL) sales up 1.3%, ahead of the market3.
- Strong performance from Pub Partners; LFL net income up 4.2%.
Integration continues ahead of schedule
- Synergies expected to be £30m this year; original three year target in two years.
- ‘Best of both’ Pub Company IT system in over 700 pubs; completion by July 2017.
- 50 brand conversions completed; average sales uplifts of over 30%.
Strong financial metrics and dividend progression
- Strong free cashflow; £42.4m post core capex & dividends, covers scheduled debt repayments.
- 4.2x net debt to EBITDA; flexible and long-term debt financing.
- Dividend per share up 4.1%; continued long-term dividend progression.
- Return on Capital Employed (ROCE) maintained at 9.4%.
Rooney Anand, chief executive officer
“We have delivered market outperformance and strong integration momentum against a backdrop of continued challenging market conditions. Our performance has been driven by growth in all divisions and the synergy benefits from the integration. These have helped to offset increased cost pressures, particularly from the National Living Wage, as well as additional investment in the customer offer to meet higher guest expectations of value, service and quality.
“The full impact of the UK decision to leave the EU remains unclear. Looking ahead, increasing levels of consumer uncertainty, further cost pressures and the changing dynamics of eating out, mean the consumer environment is likely to become more challenging. However, we are confident that the strength of our brands, pubs, people and cash generation leaves us well placed to deliver another year of progress, value creation and returns for our shareholders.”
Download the interim results 2016
1. Adjusted measures exclude the impact of exceptional items as detailed in note 3 to the financial statements.
2. The directors use a number of Alternative Performance Measures (APM) that are considered critical to aid the understanding of the groupÊs performance. Key measures are explained in the glossary on page 25 of this announcement.
3. Coffer Peach Tracker 24 weeks to 16 October 2016.
FOR FURTHER INFORMATION
|GREENE KING PLC||
ROONEY ANAND, CHIEF EXECUTIVE OFFICER
KIRK DAVIS, CHIEF FINANCIAL OFFICER
0207 251 3801
Notes for Editors
- Greene King was founded in 1799 and is headquartered in Bury St. Edmunds, Suffolk. It currently employs around 43,000 people across its main trading businesses; Pub Company, Pub Partners and Brewing & Brands.
- At the end of the half year, it operated 3,029 pubs, restaurants and hotels across England, Wales and Scotland, of which 1,823 were retail pubs, restaurants and hotels, and 1,206 were tenanted, leased and franchised pubs. Its leading retail brands and formats include Hungry Horse, Farmhouse Inns, Chef & Brewer, Flaming Grill and the Greene King Local Pubs estate. 84% of the estate is either freehold or long leasehold.
- Greene King also brews quality ale brands from its Bury St. Edmunds and Dunbar breweries, and is the UK’s leading cask ale brewer and premium ale brewer. Its industry leading portfolio includes Greene King IPA, Old Speckled Hen, Abbot Ale and Belhaven Best.