Greene King increases its 2017 full year dividend by 3.6%

DividendMax Ltd.

Greene King increases its 2017 full year dividend by 3.6%

Continued market outperformance

·      Pub Company like-for-like (LFL) sales up 1.5%, ahead of the market, driven by a good Christmas, a stronger fourth quarter and a strong performance from Greene King Locals.

·      Record performance from Pub Partners; LFL net profit up 5.0%.

·      Brewing & Brands revenue up 1.7%; own-brewed volume (OBV) down 2.8%, beating the UK cask ale market.

Strong financial metrics supporting growth and shareholder returns

·      Record revenue, up 6.9% to £2,216.5m, and operating profit before exceptional and non-underlying items, up 4.9% to £411.5m.

·      Strong free cash flow generation; £119.6m post core capex2 & dividends, covers scheduled debt repayments.

·      4.0x net debt to EBITDA; long-term debt financing.

·      Return on capital employed (ROCE) maintained at 9.4%.

·      Dividend per share up 3.6%; continued long-term dividend progression.

Spirit integration completed a year ahead of schedule

·      £35m targeted annual synergies delivered.

·      Pub Company IT system rolled out across over 1,700 pubs.

·      Integrated supply chain in place.

·      Organisational restructure completed.

·      Year one brand conversions achieved sales uplifts of over 30%.

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