Spirit Pub Co acquisition doubles Greene King profits
Operating profits at Greene King are up 46.1% year on year to £180.2 million, according to its first-half results released today.
Revenues at the Bury St Edmunds-based group are up 49.2% to £917.7 million for the same period.
The growth is largely attributed to the group’s £774 million acquisition of the Spirit Pub Company in July this year.
Excluding Spirit Pub Company revenues, Greene King posted profits of £128.3 million up 4.1% on the back of sales of £648.4 million, up 5.4 %.
The figures are all for the 24 weeks to October 18, 2015.
Projected cost savings from the acquisition have risen from £30 million to £35 million.
Rooney Anand, Greene King’s chief executive, said: "It has been a strong first half, with the Greene King business strengthening and significant progress made in the Spirit integration.
“Like-for-like sales growth in Greene King Retail improved during the half and both Pub Partners and Brewing & Brands delivered profit growth and margin expansion.
"We completed the acquisition of Spirit Pub Company and, by combining the best of both companies, made good progress in capturing value from the acquisition and creating the UK's leading pub hospitality company.
"We believe we have the best portfolio of retail pub brands, the best pub assets and the most talented team which, when combined with the strong contribution from synergies and the benefits of our enlarged scale, will ensure we continue delivering value to our customers and our shareholders."
Connor Campbell, senior market analyst at www.spreadex.com, said: “The successful acquisition of the Spirit Pub Company appears to have been a big boon for Greene King. It jumped 7% to a 20-month high this Wednesday following an 18% increase in its pre-tax profit to £84.9 million for the company’s half year results, which also included a 49.2% surge in revenue to £917.7 million.”
Greene King was founded in 1799. It currently employs some 42,000 people.
It operates 3,069 pubs, restaurants and hotels across the UK. Retail brands and formats include Chef & Brewer, Flaming Grill and Loch Fyne Seafood & Grill.
Its portfolio of beers includes Greene King IPA, Old Speckled Hen and Abbot Ale.