Bury St Edmunds: Record profits for Greene King as annual revenue tops £1.3bn
PUBLISHED: 09:19 03 July 2014 | UPDATED: 14:12 03 July 2014
ADAM SMYTH PHOTOGRAPER
Pubs and brewing group Greene King today reported a fourth consecutive year of record results after its annual turnover topped £1.3billion.
The Bury St Edmunds-based company posted revenues of £1.302bn for the 53 weeks to May 4, representing a 8.9% increase on the previous 52-week year’s figure of £1.195bn and 6.5% growth adjusted for the extra week’s trading.
Operating profit was 7% ahead in total, at £265.6million against £248.2m, and 5.0% higher on an adjusted basis while pre-tax profit before exceptional items was 9.4% higher (7.4% on adjusted basis) at £173.1m, against a restated £158.2m for 2013, reflecting changes in accounting rules.
However, statutory pre-tax profits were down 5.2% at £105.2m, from £111m the previous year, largely reflecting impairment charges on disposals and property, plant and equipment.
Like-for-like sales in the group’s flagship retail division were 4.1% up, with food sales 5.0% ahead on a like-for-like basis, average earnings per pub in its tenanted and leased pubs division were 5.2% up and core own-brewed volumes within the brewing and brands division were 4.6% up, with profit 1.3% higher.
Greene King chief executive Rooney Anand said: “We have delivered four years of record results since the credit crunch and maintained this momentum over the last 12 months by giving our customers what they want, in the right way and at the right price.
“Profit growth of 12% in our largest business, Retail, was driven by strong like-for-like sales growth and by newly-acquired sites. Pub Partners and Brewing & Brands also performed well. As a result, we achieved strong earnings, ROCE and dividend growth for the year.
““There are now clear signs that both the UK economic outlook and consumer confidence are improving, although consumers continue to spend cautiously.
“While continuing to provide customers with great value for money, excellent service and industry-leading quality, we see the pace of change in how people eat and drink out of home quickening and so we are shaping the business for the future to benefit from the opportunities these changes will bring.”
Greene King is part of the EADT and EDP Top100, which lists the 100 biggest businesses across Norfolk and Suffolk.