Greene King confident despite slowdown

Pub operator Greene King said it is on track to meet expectations this year despite challenging conditions.

The pub chain and brewer said its "tough" approach to controlling costs means it is well-placed to withstand the pressures of a consumer downturn.

"Market conditions remain challenging as consumer confidence continues to weaken and consumer expenditure continues to contract.

"Within this environment, Greene King is well placed to withstand many of the pressures these trends create," the brewer said in a statement.

For the first 16 weeks, like-for-like sales in Greene King pubs fell 1.6 per cent, mainly due to falling numbers at smaller, community sites.

Larger, food-led pubs are coping with the market better, especially their 'value for money' sites.

Brewing volumes were down three per cent, "but given near double-digit declines in the on-trade beer market, this is a strong performance," Greene King said.

Greene King added that despite the current trading challenges and lacklustre outlook for the UK economy, the company anticipates meeting its expectations for the year.

The confident outlook and a fall in oil prices helped boost share in Greene King this morning, sending them up 5.63 per cent to 562.5p.