Suffolk-based brewer and pub operator Greene King (GK) has reported strong sales growth in its latest trading statement.

Retail like-for-like sales were up 4.6 per cent during the 17 weeks to 30 August, while both destination and local pubs are reported to be 'in healthy growth', with food-led pubs performing best. Belhaven Retail sales increased by 10.9 per cent compared to 2008. The company expects, however, like-for-like sales growth to moderate due to tougher year-on-year comparatives in the second half. Profit trends at Pub Partners, GK's mainly tenanted business, have continued through the summer in line with those seen at the end of the last financial year. After 16 weeks, average EBITDA per pub was down 7.2 per cent. Interest in tenancies from prospective new licensees has picked up and the number of closed pubs has reduced from 30 at the year-end to 15.

The brewing business has performed strongly and continues to take a significant share of the market. In a UK beer market down 6.0 per cent in the three months to July, according to the BBPA, Brewing Company own-brewed volumes are +12.0 per cent after 17 weeks and Belhaven Best volumes were up 14.8 per cent. In Brewing Company, the growth has been driven by strong performances across its core brands in both the on-trade and the off-trade, particularly by premium ale, Old Speckled Hen. Elsewhere, GK reports that its non-core disposal strategy has seen 37 disposals in the year so far, generating £9.6m at around book value. The eleven pubs acquired from Punch Taverns are said to be trading in line with expectations.

Looking ahead, the company remains cautious on the outlook for the industry and the economy despite the encouraging start to the year, but believes it is 'in a strong position to continue outperforming the market across the UK pub and beer sectors'.