Greene King results

Suffolk brewer Greene King’s results for the 52 weeks ended 3 May 2009 have highlighted the following:

PBT of £118.5m* vs. £115.0m profit forecast at time of rights issue

Retail like-for-like sales up 1.7% whilst maintaining gross margins

Pub Partners’ trends have stabilised

Belhaven achieved milestone profit of over £30m*; growth of 11.9%**

Strong market outperformance in Brewing Company; own-brewed volume +1.8%

Unique amongst major players in
Continuing to pay down debt (£46.9m)
Maintaining capital investment (£84.5m)
Holding our dividend

Successfully completed £207.5m rights issue post year-end
Eleven high quality pubs acquired (£30.4m)
Bonds repurchased (£22.4m nominal)

Although outlook remains uncertain, current trading is encouraging

Rooney Anand, Greene King chief executive, comments: “We have delivered a resilient set of results in the face of extremely challenging trading conditions. Notable performances came from Retail, which achieved industry-leading like-for-like sales growth, Belhaven, which is now generating profits 50% above the level on acquisition in 2005, and Brewing Company, which delivered organic volume growth.
 

“Trading generally improved from December, although cost pressures remain and both economic and political uncertainty are affecting consumer confidence. The funds raised by our recent rights issue will further strengthen our position through selective acquisitions and opportunistic debt reduction, resulting in an enhanced estate, an even stronger capital structure and greater opportunities for growth. We therefore look forward with cautious optimism and believe we have the best assets, brands and people to continue growing our share of the market.”

* before exceptional items, **07/08 adjusted from 53 weeks to 52 weeks for comparative purposes