Greene King "on track" despite summer slowdown

Published: 02 September, 2008

Greene King has said it is on track to meet expectations for the current financial year, despite seeing a drop in sales over the summer period.

Greene King has said it is on track to meet expectations for the current financial year, despite seeing a drop in sales over the summer period.

The Suffolk-based brewer, which issued a trading update today, said that like-for-like profits in its managed pubs were down 1.6% in the 16 weeks to August 24. Sales in its tenanted pubs were down 1.7%.

It admitted that "market conditions remain challenging as consumer confidence continues to weaken and consumer expenditure continues to contract" but said that it was confident that its "robust and resilient" model and strong cashflows would allow it to continue investment in growth areas such as food, accommodation and premium ale.

At its brewing division, volumes were down 3%, but the group said that given near double-digit declines in the on-trade beer market, this was a strong performance.

In Pub Partners, Greene King's tenancy and lease division, like-for-like profits were down 1.7%. However the group recently announced that it was investing £1 million in a scheme designed to give its tenanted pubs a cash boost, by reducing the price of beers and wines until the end of November.

Greene King concluded that the "cashflow performance and balance sheet position remain healthy and in line with forecasts. Following the successful debt refinancing, interest rates are 100% fixed and no further refinancing is required until 2012."

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