Sunshine lifts Greene King

Jul 2 2009 By nebusiness

Pubs and brewing group Greene King today said sunnier weather and its shift towards food had paid dividends in strong recent trading.

Like-for-like sales across its managed outlets - which include Old English Inns and the Hungry Horse chain - rose 5.2% in the eight weeks to June 28.

Food now accounts for more than a third of its retail sales but the better weather also saw an improved performance from its drink-led pubs, the firm added.

Despite uncertainty over the outlook, the firm - behind the market-leading Greene King IPA cask ale - added that brewing volumes were also 12.1% ahead.

Pre-tax profits were down 15% to £118.5m in the year to May 3, but higher than expected at the time of its recent £200m rights issue.