Greene King, the UK’s biggest pub owner that is set to be acquired in £2.7bn deal, has reported a fall sales as it struggled up against tough comparatives with the same period last year which was boosted by the World Cup and good weather.
Over the 18 weeks to 1 September, like-for-like sales in its Pub Company unit were down 1.8%. However, the group highlighted that these had picked up over the last seven weeks, growing 1.5%.
Comparable net income at Pub Partners was down 4.2% for the first 16 weeks of its financial year, driven by softer like-for-like beer sales following last year’s comparatives. In its Brewing & Brands unit, total beer volumes were down 6.5% for the first 18 weeks and own-brewed volumes fell 7.9%.
Greene King stressed it was on track with its cost mitigation programme and expected to limit net inflation this financial year to £10-20m. It also expects to dispose of 85-95 pubs this year, generating proceeds of £45-55m, from which it will fund the opening of eight new pubs.
The update comes ahead of group’s AGM today and just weeks after it announced a deal to sell the entire business to CKA, a real estate investment firm run by Hong Kong’s richest family. The £2.7bn deal offers a 51% premium on the value of Greene King’s shares the day before the announcement.
The directors of the firm are unanimously recommending that shareholders approve the deal when they get the chance to vote on it.
