Greene King revenues top £2bn as pub chain hopes inflation fears will be drowned out by a boozy Coronation
Greene King said revenues continued to soar however the chief executive of the group warned that inflation and the cost of living crisis would prove a “tough backdrop” for the hospitality sector.
The pub operator, which has over 2,000 sites across the UK, reported a revenue hike of 62.2 per cent for the 52 weeks ending 1 January 2023.
Greene King said revenues totalled £2.17bn, up from £1.34bn, as the easing of Covid-19 restrictions and sporting events such as the FIFA World Cup saw drinkers flocking back to its pubs.
The business saw operating profits reach £192.6m for the year, up from £18.6m year on year.
However, as consumers cut down on spending due to the cost of living crisis, Greene King said that customer confidence remained “depressed throughout the year”.
Greene King and green energy
Nick Mackenzie, chief executive of the group, said he expected the “tough backdrop” of high energy costs and inflation to continue throughout the year – but assured that the business had “planned for this” and had implemented energy hedging to offset soaring price increases,
He said: “Greene King delivered a strong operational and financial performance during 2022 despite the challenging macroeconomic backdrop with progress made in all our businesses.”
Despite this, Greene King, like many pubs across the UK, is predicting a boom in sales for the upcoming King’s Coronation this weekend, with the business estimating that 1.8 million pints will be pulled across its portfolio during the celebrations.
The Coronation weekend
Pubs across the UK are bracing for an influx of visitors to celebrate the coronation of King Charles III this week, with some trade groups suggesting the sector could see a multi-million pound boost from increased sales.
UK pubs will see a £120m boost as people flock to pubs during the bank holiday weekend, figures from the British Beer and Pub Association (BBPA) show.
Around 1.75 million visitors are expected to flock to London’s west end over the course of the bank holiday weekend, bringing in £50 million, according to the New West End Company, which represents 600 restaurants, hotels, and retailers in the area.