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Greene King (GNK) has reported a fall in like for like sales over the 18 weeks to 1 September ahead of a shareholder vote to approve its £2.7bn takeover by a company controlled by Hong Long billionaire Li Ka-Shing.
The brewer and pub company said like for like sales in its pub company division were down 1.8% for the first 18 weeks of its financial year “reflecting the tough comparatives of last year’s successful World Cup and good weather”.
However, it said it the past seven weeks pub company sales were up 1.5% on a comparable basis and are up 1% over the first 18 weeks on a two-year basis.
Like for like net income in its pub partners division was down 4.2% for the first 16 weeks, driven by softer beer sales following last year’s comparatives.
Its brewing & brands division saw total beer volumes drop 6.5% for the first 18 weeks and own-brewed volumes slump 7.9%.
Greene King said it remains on track with its cost cutting programme and expects to limit net inflation to £10m-£20m in the current financial year.
It also remains on track with its disposal programme and expects to dispose of 85-95 pubs this year, generating disposal proceeds of £45-55m from which it will fund the opening of eight new pubs.
On 19 August Greene King (GNK) announced it had accepted an 850p per share bid by Hong Kong listed international conglomerate CK Asset Holdings – controlled by billionaire Hong Kong tycoon Li Ka-shing.
The deal represents a 51% premium on Greene King’s previous closing price of 563p, and saw the shares shoot up to 850p on the announcement.
Shareholders will vote whether to approve the takeover at Greene King’s AGM later today.
Morning update
In this week’s edition of The Grocer, Premier Foods’ (PFD) new board tipped to oversee an effective break-up of the group, quinoa foods specialist Quinola Mothergrain seeks £1.5m for UK and international expansion push and more.
See thegrocer.co.uk/finance for full details later this morning.
On the markets this morning, the FTSE 100 has opened edging down 0.1% to 7,265pts.
Early risers include Glanbia (GLB), up 3.3% to €11.15, Just Eat (JE), up 0.9% to 771.4p and WH Smith (SMWH), up 0.8% to 2,042p.
Fallers so far today include AG Barr (BAG), down 1.5% to 604p, FeverTree (FEVR), down 1.4% to 2,268.6p and Finsbury Food Group (FIF), down 1% to 63.4p.
Yesterday in the City
The FTSE 100 fell back 0.6% to 7,271.2pts yesterday as some notable fmcg names weakened on the continuing rebound of sterling.
The pound rose to $1.2326 yesterday after dipping below $1.20 as news emerged last week of the suspension of parliament.
The improved fortunes of the pound appeared to affect a number of FTSE 100 firms with significant international earnings, with Diageo (DGE) falling 3.4% yesterday to 3,489p, Compass Group (CPG), down 2.7% to 2,080p, Unilever (ULVR) down 2.4% to 5,179p and Reckitt Benckiser (RB) losing 1.5% to 6,403p.
Other fallers included PayPoint, down 2.8% to 902p, Greggs (GRG), down 2.6% to 2,206p, Stock Spirits (STCK), down 2.5% to 230.5p, Britvic (BVIC), down 2.1% to 880p, Hilton Food Group (HFG), down 1.7% to 975p and C&C Group (CCR), down 1.7% to €3.96.
Troubled McBride (MCB), which posted a 23% drop in adjusted operationg profits yesterday after a series of profits warnings rose 1% to 51.5p after it insisted trading momentum was improving after measures it has taken to revamp its business.
Other risers included B&M European Value Retail (BME), up 4.6% to 373.9p, Glanbia (GLB), up 2.8% to €10.79, PureCircle (PURE), up 2.5$ to 244p, Devro (DVO), up 2.3% to 193.6p, WH Smith (SMWH), up 2.2% to 2,2026p and Marks & Spencer (MKS), up 1.8% to 196.5p.
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