Greene King sales remain strong as it adds eight Punch pubs to portfolio

27th January 2010, 9:43am

National pub company, Greene King, has said like-for-like sales in the 38 weeks to 24th January 2010 were up 4.3%, adding that this figure would have been higher had severe snowfall not hit the UK.

Sales fell 0.7% in the last three weeks up to 24th January 2010 due to the bad weather but Greene King described this performance as "relatively strong".

In a statement the pubco added: "Like-for-like food sales growth remains very strong and combined with growth in food-related drinks' sales, continue to drive our underlying performance in both destination and local pubs. It is expected that total like-for-like sales growth will moderate through the rest of the financial year due to ongoing tough comparatives and the VAT rise. Second half margins are expected to be broadly in line with the corresponding period last year."

News of the financial performance comes as Greene King announced the acquisition of eight freehold, managed pubs from Punch Taverns. The purchase totals £15.9 million as Punch looks to reduce its heavy debt.

Greene King's statement concluded: "We are well placed to continue strengthening our competitive position and, whilst the UK consumer outlook is still uncertain, we are confident that we will meet the board's expectations for this financial year."

Related Articles:

• 11 Jun 2010 - Greene King buys four pub restaurants from Punch Taverns

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