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Greene King sinks as momentum worries outweigh sales strength

Tue, 30th Apr 2019 07:21

(Sharecast News) - Greene King on Tuesday said that annual sales from its pubs beat market expectations following growth from drinks led local pubs, though its shares dropped amid analyst concern over slowing momentum. For the year ended 28 April, the pub and restaurant operator and brewer said its Pub Company segment's like-for-like sales beat market expectations to rise by 2.9% following programmes to improve value, service and quality for customers, with the company's 1,000 drinks led local pubs leading the way with sales 4.6% higher than last year.Sales for the last quarter were up 2.4% after strong Easter weather propelled it to a 4.6% increase in sales compared to the holiday weekend last year, aided by particularly strong trading from Chef & Brewer, which recorded LFL sales of 15.3%, the company said.Meanwhile, the FTSE 250 traded company's Pub Partners segment, which consists of 1,200 UK pubs operated by independent licensees, saw net income for the 52 weeks climb 1.6% while LFL profit was down 1.4%.Finally, total beer volumes from the Brewing & Brands segment were up 0.9% and own-brewed volumes were down 3.4% against a UK ale market that dropped by 4.2%, while the year also saw Greene King make progress with its debt financing programme, repaying £393m to slash 51% off a debenture related to its Spirit Pub Company,Rooney Anand, chief executive of Greene King, said: "We have traded strongly this year and have returned to market outperformance. As I hand over to my successor Nick Mackenzie, I believe that, with our strong pub and beer brands, talented and dedicated team and high-quality estate, Greene King is well positioned to make further progress and continue outperforming the market."Looking ahead, Greene King anticipated that current year full-year profit before tax, non-underlying and exceptional items to be between £244m and £247m, compared with £243.0m last year, as the company expects to limit net cost inflation this year to between £10-20m.The company's share price suffered despite the positive looking update, with analysts citing weak comparative figures from last year due to the 'Beast from the East' and an apparent slowdown in momentum for the business.RBC Capital Markets said that the 2.9% like for like sales growth in the Managed Pubs for the year suggested slowing momentum from the 3.2% run rate reported after 36 weeks earlier this year, while anticipated profit before tax, profit per pub and brewing volumes all fell short of its expectations.Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Given the weather was hampering efforts last year, it's unfortunate trading hasn't been spectacular while the elements are in its favour. Investors are making sure it's known that good isn't necessarily going to be good enough, Greene King will need to follow up this set of results with a string of more positive numbers if we're to believe it's out of the woods."Greene King's shares were down 6.93% at 644.60p at 1051 BST.

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30 Nov 2016 08:23

Greene King's consumer and cost worries overshadow pub profits

(ShareCast News) - First half profits at Greene King bubbled higher thanks to tasty organic growth and the first seven weeks from the acquired Spirit pubs business, but the brewer served up a side order of caution about rising consumer and cost pressures. As well as noting the "demand challenges" of

30 Nov 2016 07:53

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13 Oct 2016 14:41

Thursday newspaper share tips: Marston's, Greene King, Monks

(ShareCast News) - Investors' worries about the impact which inflation will have on Marston's and Greene King are overstated and the shares are cheap, The Times's Tempus said. They are well-positioned in the market, well-funded relative to their peers and their brewing operations are proving success

15 Sep 2016 09:27

Pubs outdo restaurants again in August, Coffer Peach data shows

(ShareCast News) - UK large pub and restaurant groups enjoyed better sales in August as Britain took advantage of better weather to eat and drink out. There was a 0.6% increase in like-for-like (LFL) sales at managed pubs, bars and restaurants, up from 0.3% last month, according to the monthly Track

13 Sep 2016 12:50

Greene King to move Spirit pub employees away from zero-hour contracts

(ShareCast News) - UK based pub retailer and brewer Greene King has announced that it is going to move workers from its acquired Spirit pubs off zero-hour contracts, according to a report by The Guardian. The company had already moved its staff away from zero-hour contracts before acquiring Spirit i

9 Sep 2016 16:24

Britain's FTSE sees biggest weekly decline since May

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UPDATE 1-Wetherspoon upbeat as Greene King delivers post-Brexit warning

(Recasts, adds Wetherspoon Chairman comment, analysts, share price reaction, context) By Rahul B Sept 9 (Reuters) - Pub operator J D Wetherspoon gave an upbeat evaluation of its post-Brexit prospects on Friday, even as a trading update from rival Greene King cast a nervous eye towards

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