Join our community of smart investors

Greene King in good spirits as sales and profits rise

The pub giant reaped the rewards of its landmark takeover of Spirit Pub Company
June 29, 2016

Uncertainty ahead of the EU referendum threatened to dry up sales at Greene King (GNK) in the reported period. But the pub giant's £774m takeover of Spirit Pub Company fuelled growth across its divisions and sent adjusted operating profits up 53 per cent to £256m.

IC TIP: Buy at 759p

Like-for-like sales rose 1.5 per cent in the key managed business, as strong growth at Chef & Brewer pub restaurants helped it to best the broader market. Moreover, comparable net income grew by 2.7 per cent in the tenanted and leased estate, as the Spirit deal and the disposal of 48 pubs contributed to a 14 per cent rise in average cash profits per pub. And additional sales to Spirit-managed pubs helped to drive operating profits up a tenth in the brewing and brands division.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in