Shares in brewing company Greene King (LON:GNK) have risen 8 percent this morning, after interim results showed strong growth in all areas.
Revenue and profit grew across all divisions, with group revenue up 49.2 percent to 917.7 million and group operating profit rising 46.1 percent to 180.2 million.
Greene King like for like sales also rose 2 percent, with the performance being good news for its shareholders – adjusted earnings per share were up 15.4 percent.
Rooney Anand, Greene King’s chief executive, said in a statement:
“It has been a strong first half, with the Greene King business strengthening and significant progress made in the Spirit integration. Like-for-like sales growth in Greene King Retail improved during the half and both Pub Partners and Brewing & Brands delivered profit growth and margin expansion.”
Expect to outperform initial cost synergy guidance; target raised to GBP35m
In July, the company completed a £773.6 million takeover of Spirit Pub Company, bringing Greene King’s total estate to 3,116 pubs, the largest managed pub group in the UK. The acquisition seems to have paid off – the company now expects to outperform initial cost synergy guidance, with the target being raised to £35 million.
“We believe we have the best portfolio of retail pub brands, the best pub assets and the most talented team which, when combined with the strong contribution from synergies and the benefits of our enlarged scale, will ensure we continue delivering value to our customers and our shareholders,” Anand commented.
Greene King currently have a 52 week range of between 712 – 922.50, and are currently trading up 8.28 percent at 922 pence per share (0849GMT)