Greene King hopes for bumper summer

The group, which has over 120 pubs in Yorkshire, said like-for-like sales in the 50 weeks to April 15 grew by 4.6 per cent with growth continuing in the past 13 weeks at 4.5 per cent.

The increase was driven by demand for dining out and food like-for-like sales grew by 6.3 per cent in the 50 weeks to April 15 and by 6.7 per cent in the last 13 weeks.

On Mothers’ Day alone the group sold 220,000 meals, up 16 per cent on the previous year, with wine sales up 18 per cent.

Greene King said its performance was helped by the launch of new spring menus across a number of its brands and formats ahead of Easter.

Greene King’s chief executive, Rooney Anand, said: “Following a record Christmas, we achieved very strong like-for-like sales growth on Valentine’s Day, Mothers’ Day and St Patrick’s Day. Easter sales this year, despite more mixed weather, were in line with Easter last year.

“Our success at big events bodes well for the upcoming summer as we are well placed to benefit from the Diamond Jubilee, Euro 2012 and the Olympics.”

The group said March was very strong, helped by the warmer weather, while February was in line with the previous year, despite tough comparatives.

The company said its retail expansion strategy is on track with 37 new sites acquired and developed this year.

Analyst James Dawson, at Charles Stanley, said: “Greene King has reported a robust end to the group’s financial year, with Greene King Retail securing strong like-for-like sales growth despite some challenging comparatives and volatility in trading patterns, part courtesy of fluctuating weather conditions.

“Management believe that the estate is well positioned to capitalise on the major events of 2012, the Diamond Jubilee, Euro 2012 and Olympics, and it has marketing tactics outlined for driving footfall during these events.”

Charles Stanley is forecasting pre-tax profits of £149m for 2012.

Greene King said its Hungry Horse brand has grown to 180 sites across the UK.

Pub Partners’, the company’s tenanted, franchised and leased business, saw earnings per pub grow by 3.8 per cent.

The company said it continues to make strategic progress in Pub Partners with 97 non-core pubs disposals this year.

“Our industry-leading core ale brand portfolio has maintained its market outperformance,” said Mr Anand.

“In a UK ale market down 4.5 per cent, core brand own-brewed volumes were up 0.8 per cent after 50 weeks.”

Earlier this year the group relaunched Greene King IPA backed up by marketing support of £4m, including new TV advertising.

As part of the relaunch it also introduced two new beers: Greene King IPA Gold and Greene King IPA Reserve. Analyst Greg Johnson at Shore Capital said: “Greene King has announced a further robust update for the 50 weeks to April 15.

“The performance continues to show a continued robust trading backdrop for Greene King, albeit volatility over short periods with February flat and March strong.

“We continue to espouse the merits of well-run managed pub businesses, such as Greene King, but at this stage prefer the lower valuation and rollout story of Marston’s and the recovery play at Spirit.”

Analyst Patrick Coffey, at Liberum Capital, said: “Relative to peers, we expect the Olympics to have the most positive effect on Greene King given the company’s high London exposure.

“We remain buyers of Greene King as the valuation is undemanding given the growth expected.

“The momentum in food sales growth is protecting the company from UK consumer press- ures.”

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