Greene King increases its 2015 interim dividend by 4.6%

DividendMax Ltd.

Greene King increases its 2015 interim dividend by 4.6%

Record sales; retained business growth of 5.3%.

·     Retail like-for-like sales +0.8%; Pub Partners like-for-like net income +3.7%; Brewing & Brands own-brewed volume +5.9%.

·     Retained business adjusted earnings per share growth of 5.3% with strong cash flow, lower leverage & dividend growth.

·     Return on capital employed up 20 basis points on first half last year to 9.2%.

·     Further strategic progress:

Added 11 sites to Retail, taking estate to 1,040.

Pub Partners estate now 864 sites; average EBITDA per site up 13.8%. 

·      Recommended proposal to acquire Spirit Pub Company, post period-end.

·      After 30 weeks, Retail LFL sales were +0.8% and +1.5% last 12 weeks.

·      Bookings for Christmas across Retail are +7.2%.

H1 Dividend up from 7.6p to 7.95p (+4.6%)

Rooney Anand, Greene King chief executive officer, comments:

"We have delivered record sales and strong returns against a challenging backdrop, reflecting the inherent strength of our business model and our proven strategy. Retail, our largest business, delivered profit growth, while we maintained momentum in Pub Partners and Brewing & Brands. As a result, we improved our ROCE, lowered our leverage and increased the dividend.

"In addition, we have made further, significant strategic progress by increasing our retail estate and disposing of non-core tenanted pubs to enhance further the quality of our estate, and making a recommended offer for Spirit Pub Company.  

"With real incomes struggling to grow, customers remain cautious about spending on eating and drinking out. As a result, we will continue to tailor our customer-focused strategy to ensure we deliver another year of progress, long-term growth and strong returns to our shareholders."   

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