Greene King has posted a big jump in sales and profits, boosted by its acquisition last year of rival firm Spirit.
Group revenues in the year to 1 May jumped 57.6% to £2.1bn with pre-tax profits climbing 60.6% to £189.8m. The company said that it delivered £16.7m worth of cost synergies versus its year one target of £12m following the successful integration of the Spirit business.
Pub Company like-for-like sales rose 1.5%, ahead of the market growth of 1.3%. Its Pub Partners like-for-like net income increased 2.7%, whilst Brewing & Brands own-brewed volume was up 2.9%.
Rooney Anand, Chief Executive Officer, commented: “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.”
However, he warned that consumer spending is likely to suffer following the referendum vote to leave the EU. “The increasingly uncertain trading environment is likely to weigh on consumer sentiment in the near term,” said Anand. “We will not be immune from its effects, but our business has shown resilience in the past.”
He added: “The opportunity that Spirit represents in bringing the business together as we are doing, and having the strongest stable of brands and the biggest war chest, will give us opportunities that will enable us to take market share.”