Greene King blames weather as sales fall

08/09/2017 - 08:51
Pub operator Greene King has blamed the turn in the British summer weather for a decline in its sales for the start of its new financial year.

The company’s like-for-like sales at its managed pubs dropped 1.2% in the 18 weeks to 3 September, worse than the 0.7% decline for the pub sector overall.

It said that while its figures in the first ten weeks were in line with expectations, trading suffered when the weather worsened.

Greene King was among a number of pub businesses, which included JD Wetherspoon and Youngs, which reported an increase in sales during April and June's warm weather.

Greene King, which operates over two thousand pubs, restaurants and hotels across the UK, said that most of the Lfl sales decline could be attributed to value food.

A company statement said: “We are continuing to address the challenges of the value food sector through measured capital investment to upgrade and reposition pubs and through selective disposals."

Greene King reported positive returns for its Pub Partners business with Lfl profits of 1.4% after 16 weeks.

The net profit of its Brewing & Brands, own-brewed volume was down -0.5% against a UK ale market down -2.9% and a cask ale market down -7.0%.

Greene King added that its efforts to cut costs were helping to reduce the impact that the sales declines was having on the company’s figures.

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