Greene King posts record half-year revenue but warns of 'challenges' ahead

Pub operator Greene King has reported record half-year revenues on the back of strong growth at its pubs and restaurants.

Revenue increased by 14% year-on-year in the six months to 16 October period to £1.04bn ($1.3bn).

This was helped by a 16% increase in revenues at Greene King's more than 1,800 pubs, restaurants and hotels.

Adjusted profit before tax was up 15% to £139m.

"Our performance has been driven by growth in all divisions and the synergy benefits from the integration," chief executive Rooney Anand said.

"These have helped to offset increased cost pressures, particularly from the National Living Wage, as well as additional investment in the customer offer to meet higher guest expectations of value, service and quality."

Anand warned that increasing consumer uncertainty and rising cost pressures could create a challenging business environment for Greene King in the coming months.

"However, we are confident that the strength of our brands, pubs, people and cash generation leaves us well placed to deliver another year of progress, value creation and returns for our shareholder," he said.

Greene King raised its interim dividend by 4.1% per share to 8.8p.

Its share price fell 1.7% during trading in London on 30 November.