Pub rivals post contrasting figures in tough climate

● Greene King interim earnings down 8%, while Marston’s rise over the year

Two pub groups with a rising Scottish footprint unveiled contrasting financial results yesterday, with Greene King interim profits sliding 8 per cent and Marston’s full-year earnings jumping 24 per cent.

Greeneking,whichownsthe Belhaven Brewery and about 300 pubs in Scotland, saw sales slide after a challenging first half and warned market conditions would “toughen” over the next few years.

The group, which owns the Hungry Horse and Chef and Brewer brands as well as the likes of the Albanach in Edinburgh’s Old Town, said customers had tightened their belts, while rivals cut prices to offset disappointing weather in August and September.

Greene King saw underlying pre-tax profits fall to £127.9 million for the six months to 15 October compared with £139m a year ago, while likefor-like sales in its managed estate fell 1.4 per cent.

Chief executive Rooney Anand said managed pub trading had improved after a £10m investment in the estate. “The first half was challenging for our managed pubs, but our actions to strengthen performance have produced an improvement since the period end,” Anand said.

“We have committed additional investment to enhance the customer experience, including being more competitive on price, having more team members available at key times and strengthening local marketing activity.”

But the Suffolk-based group, founded in 1799, cautioned that falling consumer confidence, cost pressures from national living wage increases and intense competition would remain a challenge.

It said: “While we have already initiated a number of activities to improve our competitiveness, particularly in the eating out market, we believe that market conditions are likely to toughen over the next two to three years.”

It is now working on “more detailed” plans to offset the difficult market and continue to benefit from its takeover of Spiritpubcompanyfor£774m in 2015.

The group’s leased pub chain fared better over the first half, with like-for-like net profits up 1.5 per cent, while its brewing business – behind the likes of Belhaven Best and Abbot Ale – saw sales by volume rise 0.3 per cent.

By contrast, pub/brewer Marston’s, which has about 15 pub/restaurants in Scotland including Braehead’s Steam Wheeler, saw its full-year pretax profits jump 24 per cent to £100.3m in the year to 30 September, up from £80.8m in the previous year.

Marston’s, which acquired the famous Scottish ale brand Mcewan’s earlier this year as a “platform for further growth” in Scotland, said prospects were good despite “political and economic uncertainty”.

The group, which owns the Pitcher & Piano chain, said it had seen segment growth in its taverns, leased sites, and brewing operations – though on an underlying basis group profits grew 3 per cent to £100.1m. Overall revenues rose 8 per cent to £1 billion.