Greene King: Pub giant calls for ‘urgent help’ after losing £150m
Pub giant Greene King has issued an urgent plea to the government for help after slumping to a near-£150m loss in 2024.
The Suffolk-headquartered group fell to a pre-tax loss of £147.1m during its latest financial year, having posted a profit of £45.2m in 2023.
Greene King, which operates around 2,600 pubs, restaurants and hotels across England, Wales and Scotland, however saw its revenue increase from £2.37bn to £2.45bn over the same period.
The results come after the cost-of-living crisis and no major international football tournament being staged in 2023 led to profit being slashed in half at Greene King during its prior financial year.
In new accounts filed with Companies House, Greene King chief executive Nick Mackenzie revealed its results had been impacted “by the outlook for the industry, which was compounded by decisions made in the government’s Budget which have dramatically increased our costs”.
He added that the government should “urgently introduce” business rates reform, reduce regulation and the cost of doing business to “ensure that our critical sector is protected and pubs remain at the heart of communities UK wide”.
In its results, Greene King revealed that the government’s Autumn Budget in 2024 contributed to it posting non-cash goodwill and property accounting impairments of £208.5m for the year.
On its future, the pub giant pointed to plans for a £40m brewery in Bury St Edmunds being given permission in January this year. The site is expected to be operational in 2027.
Rachel Reeves’ Budget ‘dramatically increases costs’ for Greene King
Greene King chief executive Nick Mackenzie said: “2024 was a year of transition for Greene King as we shifted our focus from business transformation to deliver and began leveraging our industry-leading investment programme.
“Pleasingly, we delivered topline revenue growth and have grown ahead of the market.
“While our tight control of costs meant we also delivered an increase in adjusted operating profit, our statutory results were impacted by the outlook for the industry, which was compounded by decisions made in the government’s Budget which have dramatically increased our costs.
“Whilst we maintain our focus on creating an agile business with a tight grip on what is within our control, the industry continues to fae a layering of costs which is changing the fundamental economics of the pub.
“We would encourage the government to urgently introduce the promised business rates reform, reduce regulation and the cost of doing business to ensure that our critical sector is protected and pubs remain at the heart of communities UK wide.
“I want to thank our team and pub partners who have remained tenacious and dedicated amidst what continues to be a very challenging time for our industry.
“We we move into a new phase, leveraging the investment of recent years, we will continue to invest with a focus on our people, being customer-first and brand-led and on further enhancing the digital experience.
“We remain confident in our brands, our people and our ability to deliver for our loyal customers.”