Greene King Share News (GNK)

(Sharecast News) - Greene King topped up sales growth in the second quarter, though fierce cost inflation continued to dilute first-half profit growth.For the 24 weeks to 14 October, group adjusted operating profits fell 2% to £184.6m, while adjusted profit before tax rose 0.2% to £128.2m, both excluding exceptional and non-underlying items.Adjusted earnings per share rose 3.2% to 33.1p and the interim dividend was kept flat at 8.8p.Management said the cost mitigation programme was on track to offset £30-35m of the £45-50m gross cost inflation forecast for the year, while interest costs were cut during the period thanks to refinancing a further portion of the debenture used for the 2015 Spirit Pub acquisition.The FTSE 250 group's managed pub estate lifted like-for-like sales 2.7%, ahead of the market's 1.1% growth and down only slightly from the 2.8% in the heatwave-boosted first 18 weeks of the year. The pubco business accelerated LFL sales growth to 3.5% over the last six weeks of the period and up to 2.9% at week 30.The Pub Partners leasehold business saw revenue slip 1.3% to £90.9m due to fewer pubs trading, but saw higher LFL drink sales, rental income and net income.Operating profits fell 2% to £134.2m in managed and 5% to £41.4m in leased pubs.Brewing & Brands revenue bubbled up 7.5% to £110m and profit 1.4% to £15m.Net debt was cut by £101m to £2.02bn after £153.5m of net cash flow was produced from operations, leading to free cash flow of £25.4m.Chief executive Rooney Anand, who earlier this month called time on the job - though no replacement is expected to be announced until the new year, hailed the maintaining of "positive momentum" beyond the boost of the World Cup and the summer weather, citing investments made to improve customer experience that helped drive sales outperformance of the market."We remain highly cash generative, meeting our debt repayment requirements, investing in our pubs and paying an attractive, sustainable dividend out of operating free cashflow. Good progress was made refinancing the Spirit debenture, which will reduce the cost of our debt and increase the strength and flexibility of our balance sheet."For the second half, he said Christmas bookings are well ahead on last year but added a note of caution. "Ongoing uncertainty around Brexit may impact on consumer confidence, but as a team we are focused on our key strategic priorities and remain confident of our outlook for the financial year."Greene King shares, which earlier in the year had fallen 50% from 2015's highs but rallied 7% since late August, were up more than 6% to 538.69p min-morning on Thursday.