According to reports, the cost of living crisis plus the fact that there won’t be a significant international football competition in 2023 caused profits at the massive pub chain Greene King to drop by half.
The firm, which has its headquarters in Suffolk and runs some 2,600 hotels, restaurants, and bars throughout England, Wales, and Scotland, reported a pre-tax profit of £45.2 million in 2023, a decrease from £98.4 million in 2022.
According to Greene King, the last financial year experienced a rise in inflation and “global macroeconomic headwinds” from 2022, leading to “increased cost pressures” and a decline in consumer confidence.
According to the group, the problems persisted throughout the year and were “exacerbated” by a few spells of unfavorable weather, especially during the typically hectic summer months and school breaks.
throughout addition, Greene King stated that trade was “further frustrated by significant industrial action on the railways at various points in the year” and that the absence of a big international football tournament in 2023 had a negative financial impact.
But because to a “particularly successful” festive period and an additional bank holiday in May to commemorate King Charles III’s coronation, Greene King’s revenue did rise from £2.1 billion to £2.3 million in 2023.
“We are creating a stronger, more sustainable Greene King that is fit for the future,” stated CEO Nick Mackenzie. “We drove that business transformation through our industry-leading investment program during 2023.”
“We accomplished a strong financial performance alongside significant strategic improvement, providing evidence that this is working.
This occurred in spite of the ongoing macroeconomic difficulties that shaped a large portion of the year. Although we exceeded pre-Covid 19 levels in sales, the increased cost of doing business had an adverse effect on our profitability.
This is a long-term, ambitious company that invests in innovation across new concepts, digitalization, and the development of current brands in order to create a balanced portfolio.
However, our primary goal is to pleasure our patrons, and we couldn’t do this without the support of our 40,000 team members and pub partners, who enable us to continue making a significant impact in the communities we serve.
“Our team is confident and excited about the future of this business and the industry in which we operate, even though we expect the challenging backdrop to persist in 2024.”
Over the course of the year, Greene King’s average workforce grew from 40,033 to 40,551.
According to Greene King, it spent £150 million on its chain of pubs in a single year.
