Greene King like-for-like quarterly sales down

PUB group and brewer Greene King has seen like-for-like sales dip in the first quarter on the back of plummeting beer sales, ahead of its £2.7bn takeover.

The Suffolk-based group said like-for-like sales across the business slid 1.8% for the 18 weeks to September 1, as it struggled to keep up with strong figures from the same period in 2018, which were buoyed by warm weather and the men’s football World Cup.

It updated investors ahead of its annual general meeting, just weeks after it announced a deal to sell the entire business to CKA Group, the real estate group run by Hong Kong’s richest family and chaired by Victor Li.

The company, which was founded in 1799, said the decline in group sales was driven by “softer” beer sales across its pubs.

Like-for-like net income across its pub partners arm slid 4.2%, as beer sales failed to match the same period in 2018.

The Bury St Edmunds company saw total beer volumes in its brewing and brands division plunge 6.5% during the quarter, while its own-brand volumes dived 7.9%.

Greene King said that it has seen like-for-like sales improve more recently, rising 1.5% over the past seven weeks compared to the same period last year.

It added that the business is on track with a cost reduction programme and expects to limit net inflation to between £10 million and £20 million.

Plans to sell between 85 and 95 pubs during the year are also “on track”, it said, as it looks to secure £45 million to £55 million in proceeds to fund the opening of eight new pubs.

Greene King is the UK’s biggest pub owner, with roughly 2,700 pubs, restaurants and hotels across the country.

The takeover deal secured last month offered a 51% premium on the value of shares in the brewer, which employs more than 38,000 staff, from trading on the day before the announcement.