Annual report 2016

Performance highlights Growth in all areas


Market outperformance

  • Pub Company4 like-for-like (LFL) sales +1.5%; ahead of the market +1.3%5
  • Pub Partners LFL net income +2.7%
  • Brewing & Brands own-brewed volume (OBV) +2.9%; ale market share up 40 basis points to 10.5%

Financial strength

  • Operating cash flow +24.1%; net debt/EBITDA improved to 3.9x6
  • Group return on capital employed (ROCE) +10 basis points to 9.4%
  • Dividend per share up 7.7%, continuing our progressive dividend track record

Strategic and operational progress

  • Five strategic priorities outlined to drive future underlying growth
  • Record customer satisfaction scores in Greene King Pub Company; net promoter score (NPS) +7.9%pts
  • Greene King named Best Managed Pub Operator at the 2016 Publican Awards

Acquired Spirit Pub Company; integration and synergies ahead of plan

  • £16.7m of cost synergies delivered versus year one target of £12m
  • Tenanted and leased integrated ahead of schedule; integration of the managed business well under way
  • Five retail growth brands identified and optimisation programme commenced to deliver long-term growth
  1. As throughout, profit figures are shown before exceptional items.
  2. EBITDA represents earnings before interest, tax, depreciation, amortisation and exceptional items and is calculated as operating profit before exceptionals adjusted for the depreciation and amortisation charge for the period.
  3. 2011–2013 adjusted for the impact of IAS 19(R).
  4. Previously Retail.
  5. Coffer Peach Business tracker.
  6. Pro-forma, calculated by inclusion of Spirit management accounts data for the seven week pre-acquisition period. EBITDA is adjusted for exceptional items as detailed in note 3 of the financial statements.