Greene King, supplier of beers including Old Speckled Hen and Abbot Ale, has reported an increase in turnover for the year to 28 April.
The brewer and pub group saw total revenue climb 4.8% to £1.2bn. Pre-tax profits rose 6.6% to £162m, however statutory profits fell to £114.8m after taking into account exceptional costs caused by disposals and unprofitable pubs.
In its brewing division, Greene King reported volumes up 1%, versus a 3.9% drop in the wider UK ale market. The division’s revenue rose 2.1% to £177.4m, helped by strong growth in bottled ale – the brewer held a 16.7% value share at the end of the year. However, operating profits in Brewing and Brands fell 9.1% to £30m.
“Brewing and Brands is a strong business with market-leading ales, supported by industry-leading brand investment and a highly efficient brewing model, combining to deliver the highest ROCE [return on capital employed] within Greene King,” said CEO Rooney Anand.
Anand said Old Speckled Hen achieved volume growth of 6.9%, against a premium ale market up 0.2%, while Greene King IPA had volume growth of 3.3%, against a standard ale market down 5.6%. Greene King’s volume share of the UK ale market rose to 10.5%, he added.
Greene King’s beers were backed by £4.5m national TV campaign, with the company claiming it was responsible for 45% of all ale media spend during the year.
Anand said the business was witnessing a “flight to value by UK consumers”, as they sought out everyday treats, and reaffirmed his support for minimum unit pricing (MUP). “We believe it would help to reduce the costs to society of irresponsible retailing and consumption of alcohol, although we do not expect legislation on MUP in this parliament.”
Greene King operates 2,256 pubs, restaurants and hotels across the UK.
Yesterday, major brewers launched a generic marketing campaign called ‘Let There Be Beer’, in a bid to combat falling beer sales across the industry.
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