Greene King (FRA:3GK) shares sunk over 5 percent on Thursday, after the group reported an 11 percent fall in annual pre-tax profits on the back of poor weather.
Annual adjusted pre-tax profits fell 11.2 percent and revenue slipped 1.8 percent throughout the 12 month period. Earnings (EBITDA) fell 7.2 percent to £489.6 million.
The company, one of Britain’s oldest brewers, has warned in the past on the effect that the government’s minimum living wage increase will have on figures, alongside higher property prices and unfavourable currency exchange rates.
“The current trading environment is still characterised by subdued consumer confidence, intense competition and rising costs,” the company said.
Like-for-like sales growth in Pub Company fell 1.2 percent, Pub partners revenue fell 2.5 percent to £193.9 million and Brewing & Brands revenue was up 7.2 percent to £215.1 million.
However, since the start of the new financial year things have begun to look up, with sales over the first eight weeks up by 2.2 percent. The group said it has benefitted from better weather and strong sporting fixtures as well as the investments made in the second half of the year on value and service.
Shares in Greene King are currently trading down 5.24 percent at 6.89 (0901GMT).