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Greene King Profit Rises, Plans For "No Deal" Brexit

Published on Nov 29 2018 2:08 PM in Pub/Bar/Nightclub tagged: Brexit / greene king

Greene King Profit Rises, Plans For "No Deal" Brexit

Britons are seeking a break from the endless Brexit debate by heading to their local for a pint, pub operator Greene King said as it reported an increase in profit over the last six months.

The pub operator, which brews beers such as Greene King IPA and Old Speckled Hen, said that it was making contingency plans to protect against disruption if Britain leaves the trading bloc next March without a deal.

"People are bored from Brexit and that's actually translating to pubs benefiting, our like to like sales are up 2.9%, so not all consumer facing businesses are suffering in the run up to Brexit," chief executive officer Rooney Anand told reporters.

"Pubs are benefiting in some respects from every time we turn on the television, radio or read the newspaper, all you hear about is Brexit and it doesn't really take you forward."

Statistics

Greene King pretax profit rose 3.2% to £127.7 million for the 24 weeks to October 14 - the first half of its financial year.

The company also said comparable sales for Pub Company, through which it manages its chain of 2,900 pubs, restaurants and hotels, had risen 2.7%.

Comparable sales at Pub Company were up 2.9% in the six weeks since the half-year point and Christmas bookings are well ahead of last year.

The company has been battling rising costs from a minimum wage increase, higher property prices and a Brexit-driven slide in the pound.

Brexit Preparations

The company said it has identified key areas of risk to its business from a "no deal" outcome and is working closely with its supply chain partners to safeguard the supply of goods to its pubs and breweries, as well as the export of beers.

Greene King is the latest British company to announce preparations for the risk of interruptions to the flow of goods and parts across borders once Britain leaves the European Union next March.

Anand declined to give details about the company's Brexit planning.

"I don't want to go into that because that's quite unique and specific to Greene King... we are a large customer of many of those domestic suppliers and we're making sure we're ahead of the queue," he said.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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