Preliminary results for the 52 weeks to 30 April 2017
These are the preliminary results for Greene King for 52 weeks to 30 April 2017.
|Group Revenue||Adjusted profit before tax1,2||Statutory profit before tax||Adjusted basic earnings per share1,2||Basic earnings per share||Dividend per share||Return on capital employed2|
Continued market outperformance
- Pub Company like-for-like (LFL)2 sales up 1.5%, ahead of the market3, driven by a good Christmas, a stronger fourth quarter and a strong performance from Greene King Locals.
- Record performance from Pub Partners; LFL net profit2 up 5.0%.
- Brewing & Brands revenue up 1.7%; own-brewed volume (OBV) down 2.8%, beating the UK cask ale market4.
Strong financial metrics supporting growth and shareholder returns
- Record revenue, up 6.9% to £2,216.5m, and operating profit before exceptional and non-underlying items, up 4.9% to £411.5m.
- Strong free cash flow generation; £119.6m post core capex2 & dividends, covers scheduled debt repayments.
- 4.0x net debt to EBITDA1,2; long-term debt financing.
- Return on capital employed2 (ROCE) maintained at 9.4%.
- Dividend per share up 3.6%; continued long-term dividend progression.
Spirit integration completed a year ahead of schedule
- £35m targeted annual synergies delivered.
- Pub Company IT system rolled out across over 1,700 pubs.
- Integrated supply chain in place.
- Organisational restructure completed.
- Year one brand conversions achieved sales uplifts of over 30%.
Rooney Anand, chief executive officer
“Greene King has delivered another set of record results, generating full year EBITDA of over £500m for the first time. The team has worked hard to maintain momentum during the period and successfully completed the integration of Spirit a year ahead of schedule. This has led to a stronger, more competitive business with an industry-leading portfolio of brands.
“Our performance has been achieved against a demanding backdrop of increased costs, weaker consumer confidence and increasing competition. While I expect these challenges to intensify over the next few years, Greene King has a very strong track record of delivery in tough market conditions.
“Using the scale that the Spirit acquisition has brought, we will continue towards our aim of being the best pub company in Britain. We will achieve this goal by ensuring we have the best brands, the best invested estate and the best people in the industry. We will target further market outperformance, in a growing market, supported by additional cost efficiencies, a robust balance sheet and strong cash generation to deliver long-term growth and attractive returns for our shareholders.”
Download the full results 2016/17.
1. Adjusted measures exclude the impact of exceptional and non-underlying items as detailed in note 3 of this financial statement.
2. The directors use a number of Alternative Performance Measures (APM) that are considered critical to aid the understanding of the group’s performance. Key measures are explained on page 30 of this announcement.
3. Coffer Peach tracker 52 weeks to end of April 2017.
FOR FURTHER INFORMATION
|GREENE KING PLC||
ROONEY ANAND, CHIEF EXECUTIVE OFFICER
KIRK DAVIS, CHIEF FINANCIAL OFFICER
0207 251 3801
Notes to Editors
- Greene King was founded in 1799 and is headquartered in Bury St. Edmunds, Suffolk. It currently employs around 44,000 people across its main trading businesses; Pub Company, Pub Partners and Brewing & Brands.
- At the end of the year, 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.