One of the better Drinks industry Investments/trades.

Certainly got Momentum in its favour and we have a bottom triangle/wedge formation breakout.

First resistance level at around 500p.



dyor

StockMarketWire.com
Greene King reports a strong first half with revenue and profit growth across all divisions.

Revenue from the existing Greene King business was up 5.4% to £648.4m and the total increased by 49.2% to £917.7m, including a 17 week contribution from Spirit.

Operating profit before exceptional items grew 4.1% in the existing Greene King estate and 46.1% to £180.2m when including Spirit and synergies realised to date. Overall, profit before tax and exceptional items grew 46.9% to £121.3m and adjusted earnings per share increased by 15.4% to 34.5p.

Following a period of further progress across the group and reflecting our confidence in future prospects for the company, the board has declared an interim dividend of 8.45p per share, up 6.3% on last year. The interim dividend will be paid on 22 January 2016 to those shareholders on the register at the close of business on 18 December 2015.

The group says: "On 23 June 2015 we completed the acquisition of Spirit Pub Company plc. We have since conducted a thorough and detailed review of the business and the integration process is under way. We are pleased to report that the integration of Spirit is proceeding well and we remain excited by the opportunities for the combined group."

Chief executive Rooney Anand said: "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.

"We completed the acquisition of Spirit Pub Company and, by combining the best of both companies, made good progress in capturing value from the acquisition and creating the UK's leading pub hospitality company.

"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."

Goodbody broker note:
"Greene King reported H116 results this morning with group revenues of £917.7m and PBT of £121.3m, representing 49% and 47% yoy growth respectively. This compares to our expectations for revenues of £893m and PBT of £102.4m. Operating margin was 19.6%, down 50 bps yoy as there was a higher contribution from managed pubs and slightly higher costs. Adjusted basic EPS was 34.5p, +15.4% yoy. The interim dividend was 8.45p, +6.3% yoy.
The Retail division delivered revenues of £740.2m, +59% yoy growth which was primarily driven by the Spirit acquisition. Excluding Spirit, Retail grew revenues by 6.7%. In H1, lfl sales grew by 2% versus our expectations for +1.5%, with lfls in the last 6 weeks of the period up 4.3%, aided by the Rugby World Cup. Spirit retail LFL sales for H1 were +1.2%. In H1, there were 10 new pub openings and 13 pub disposals (including 10 required by CMA). Management noted that since the period end it has seen broadly similar trading patterns across all divisions.
The Pub Partners division reported H1 revenues of £82.1m, +41% yoy growth. In H1, lfl sales grew by 2.4% with Spirit leased pubs +1.4%. Management continued to dispose of leased pubs with 15 disposals (incl. 6 required by CMA). The Brewing and Brands division reported revenues of £95.4m, +4.7% yoy. Own brewed volumes grew 3.6% yoy (including the additional volumes to Spirit pubs). Operating profit came in at £14.5m, +5.1% yoy with management attributing the margin benefit to channel mix and cost efficiencies in H215.
Management noted that the Spirit integration is proceeding well and is ahead of plan. In H1, the tenanted and leased pubs were fully integrated into the group. Management have revised its initial cost synergies target of “at least” £30m up to £35m with £12m in FY16 and also highlighted the potential for additional revenue benefits. Management has stated that it will invest an incremental £40-50m in brands and format optimisation over a 3 year period commencing 2016/17. Greene King’s results for H1 were impressive and we expect to see upward bias to forecasts. In relation to the National Living Wage impact, management stated that it believes that it will be able to mitigate most of the impact focussing on labour scheduling. Management guidance is for incremental cost £2m in FY17 and £6m in FY18. We maintain our positive view and re-iterate our BUY recommendation."

British brewer Greene King on Wednesday said exports of its India pale ale to China had increased sixteen-fold after President Xi Jinping was photographed enjoying a pint during his recent state visit.
The brewer has shipped 50,000 cases of the hoppy beer to China after Xi's visit to The Plough pub in Buckinghamshire, southern England, with Prime Minister David Cameron during October's trip.
"If the British prime minister chooses to drink IPA that's normal, but if the president of China chooses to drink a British beer it attracts lots of interest," Greene King chief executive Rooney Anand said.
"We've had a sixteen-fold increase in orders from China for IPA in the last few weeks and 50,000 cases are on a boat now to arrive in time for Chinese New Year."

Jefferies International today reaffirms its hold investment rating on Greene King PLC (LON:GNK) and raised its price target to 940p (from 840p).

StockMarketWire.com
Greene King reports another strong performance with all divisions trading well during the important festive period, and record trading on Christmas Day.

Combined Retail sales were up 67% in the 40 weeks to 7 February benefiting from a 33 week contribution from Spirit and 6% growth at Greene King.

In the Greene King estate, like-for-like sales were up 2.2%, led by Locals Pubs and hotels, with growth in food, drink and rooms. LFL sales grew by 1.1% in the Spirit Managed business, where the group saw continued strength in Chef & Brewer.

The group achieved record sales of £6.8m on Christmas Day in the combined retail estate which was led by food and included a record pub trading day of £19k at the Farmhouse Inn in Ashton-under-Lyme. Over the Christmas and New Year weeks, Prosecco volumes were up 69% while Premium Gin grew 77%, and at New Year a record 4,447 drinks per minute were sold in the last hour of 2015.

In addition to the ongoing strong growth in the underlying Retail business, teh group opened 10 new sites in its combined retail estate in the year to date.

Chief executive Rooney Anand said: "This was another strong performance, with all divisions trading well during the important festive period, and record trading on Christmas Day. The latest Greene King Leisure Spend Tracker shows that, despite varying their choices when eating out, pubs were a major destination for customers. Our positive trading results are a testament to the hard work and dedication of our teams who gave our guests great experiences, with value, service and quality central to our offer.

"I am pleased to report continued progress with the Spirit integration, including encouraging signs from our rebranded trial sites thus far, and continued progress in terms of synergy delivery. Our focus remains on the development and continuous enhancement of our core Greene King business while successfully integrating Spirit, to create the UK's leading pub company."

StockMarketWire.com
Greene King is confident of delivering another year of strategic and financial progress, shareholders at the annual general meeting today will be told.

Greene King says that in the first 18 weeks of the year, Pub Company delivered like-for-like (LFL) sales growth of 1.7% including a strong start to the year as customers enjoyed the European Football Championships and better weather. Growth was driven by our Local Pubs estate.

In Pub Partners, LFL net income was up 4.5% after 16 weeks, while in Brewing & Brands, own-brewed volume declined 0.5% over the same period. A statement says: "We continued to make strong progress with the integration of Spirit including the delivery of further planned synergies and over a quarter of our managed pubs now operating with the 'best of both' IT system.

"We also completed 41 brand conversions in the year-to-date with encouraging sales uplifts.

"As expected, uncertainty surrounding the UK's future withdrawal from the European Union has translated into a softening of some economic indicators and a reduction in consumer confidence.

"While the broader implications remain unclear, a number of recent industry surveys have flagged risks to leisure spend and we are alert to a potentially tougher trading environment ahead.

"With this in mind, we will continue to focus on delivering great value, service and quality to our customers. Greene King has a track record of success in challenging trading environments and our strong balance sheet and enhanced opportunities following the Spirit acquisition will help limit any potential impact from prolonged uncertainty in the environment."

Greene King also announced the appointment of Gordon Fryett as a non-executive director with effect from 1 December. He will also become a member of the audit, nomination and remuneration committees. He has many years' experience in retail and property matters, having spent his career at Tesco plc, where his roles, prior to his retirement in 2013, included playing a leading role in Tesco's expansion in the UK and overseas, the development and management of the group's property portfolio and CEO of Tesco Ireland.

i thought pretty good results though i admit the forward forecast was not exactly bullish
nevertheless, is the fall of 3.5% this morning really warranted?
indeed, sp is now down to ~800 from even recent levels of ~900 and ~980 at the beginning of the year

Will have a punt if they get to 700p any time soon.

a brief analysis just picked up .....

Shares in this pub operator have not exactly blossomed over the past year, having hit a multi-year high towards the end of 2015. First half earnings are expected on 30 November. The most recent update saw like-for-like sales rise 1.7% for the 18 weeks to 4 September, an improvement over the 1.5% rise for the twelve months to April, and ahead of the broader sector. A brand improvement drive for key restaurants such as Flaming Grill and Hungry Horse should help boost the appeal. Full year earnings are expected to increase by 3% and 4% for the years to April 2017 and 2018 respectively.
At 9.8 time earnings, the shares trade on a relatively undemanding multiple (five-year average being 11.7). A 4.4% dividend yield also boosts the attractiveness of the shares. Some cost inflation from sterling weakness may compress margins, while the ongoing rise in the minimum wage will make itself felt in the sector.

Greene King's out-performance continues.

StockMarketWire.com

Greene King has reported another set of record results following continued market out-performance.

Revenue rose by 6.9% to a record £2,216.5m, and operating profit before exceptional and non-underlying items increased by 4.9% to £411.5m.

Chief executive Rooney Anand said: "Greene King has delivered another set of record results, generating full year EBITDA of over £500m for the first time.

but the market remains tiresomely underwhelmed

Drop over done?

To uncertain to say I would have thought in this sector.

At their current 565p I would agree CD, GNK has a terrific record for eps & dps growth, I'm not in these but have a holding in MARS which has dived on the GNK news, but better luck to all who hold.

Next week I will keep an eye on this one for a buying opportunity.

555p at close.

Like-for-like sales down 1.2% but sp down by 15%. Is this justified?

Like-for-like sales down 1.2% but sp down by 15%. Is this justified?

Still going down.