Greene King toasts record sales but warns of tough challenges ahead

Cheers: Greene King, a sponsor of the England and Wales Cricket Board, has unveiled record sales figures

Joanna Hodgson29 June 2017

Greene King on Thursday unveiled record sales of £2.2 billion, but warned its food-led pubs are facing competition from takeaway websites such as Just Eat.

Rooney Anand, the brewer’s chief executive, flagged that the 2924-strong pubs and restaurants chain is contending with “the night in, supported by better home comforts, value offers from grocers and growth in delivery sites”.

The England and Wales Cricket Board sponsor also warned of pressure from business rates compounded by inflation and foreign exchange costs.

Shares fell 4p to 684p.

However, Anand was more upbeat as he revealed sales growth of 6.9% to £2.2 billion in the year to April 30.

Pre-tax profits fell 2.6%, but stripping out one-off costs, such as for its deal to buy Spirit Pubs, adjusted profits rose 6.6% to £273.5 million.

James Wheatcroft, leisure analyst at Deutsche Bank, said: “We see Greene King’s acquisition of Spirit as adding a self-help growth angle that provides insulation against tougher trading conditions.”