Food sales fuel Greene King growth

6th Sep 2011 07:46

Brewing and pubs group Greene King saw like-for-like (LFL) year-on-year sales growth in its retail business in the 18 weeks to 4 September, despite going up against tough comparatives that were boosted by last year's World Cup.The Retail division's LFL sales were up 2.6% from last year over the 18 week period, and sales growth has accelerated more recently, reflecting the removal of the World Cup from the comparison, with LFL sales growth of 4.7% in the last ten weeks.Food sales were up 4.2% on a LFL basis over the 18 week period and up 4.7% over the last ten weeks.After 16 weeks, average earnings before interest, tax, depreciation and amortisation (EBITDA) per pub in the Pub Partners division was up 2.4% but LFL EBITDA down 1.0%. LFL EBITDA in the core estate is ahead of last year, the group noted.In Brewing and Brands, core brand own-brewed volume is up 1.8%, with 5.0% growth in the last ten weeks, compared to the UK ale market down 8.0% in the last quarter. "All of our category-leading core brands are outperforming their categories with Old Speckled Hen performing particularly well," the group said.Overall, margins, profit, cash flow and the balance sheet remain in line with the board's expectations.--jh