Greene King Plc, a leading brewery and pub owner, has seen it’s shares rise 13% today. The catalyst of the sudden spark of shareholder movement was from their interim results. The company has seen a profit – before tax rise of around 18% in the 24 weeks ending October 18th along with a revenue increase of 50%.
On the income aspect the company has increased their dividend by 6.3%. This leaves us with a moderate 3.09%.
These successful figures could be traced back to Greene King’s acquisition of the Spirit Pub company. Greene Brewery has built its way up to the top with many successful acquisitions-evidently, this being one of them.
In addition to this delightful company news, a rather uncanny event has had it’s effect on Greene’s shares. President Xi Jinping along with Prime minister David Cameron recently experienced the pubs of England and enjoyed fish, chips and Greene King’s very own beer: Greene King IPA. This has led the demand for IPA in China to go up 16 – fold or 1600%.
These factors indicate towards a buy and more successful acquisitions could lead to a continuous rising profit. Although we are aware that more people are preferring the shelter of there own home to drink beer, Greene King has implemented techniques so that it’s pubs still remain a viable option to enjoy the beverage. These strategies include making food more available as snacks and proper meals as well as making their pubs a good place to watch sport.