Pub behemoth Greene King has made an urgent appeal to the government for assistance after plummeting to a nearly £150m loss in 2024.
The Suffolk-based group reported a pre-tax loss of £147.1m during its most recent financial year, a stark contrast to the profit of £45.2m it posted in 2023, as reported by .
Despite operating approximately 2,600 pubs, restaurants and hotels across England, Wales and Scotland, Greene King saw its revenue rise from £2.37bn to £2.45bn over the same period.
These results follow a cost-of-living crisis and the absence of a major international football tournament in 2023, which resulted in Greene King's profits being halved during its previous financial year.
In newly filed accounts with Companies House, Greene King CEO Nick Mackenzie disclosed that the company's results had been affected "by the outlook for the industry, which was compounded by decisions made in the government's Budget which have dramatically increased our costs."
He further stated that the government should "urgently introduce" business rates reform, reduce regulation and the cost of doing business to "ensure that our critical sector is protected and pubs remain at the heart of communities º£½ÇÊÓƵ wide".
In its results, Greene King revealed that the government's Autumn Budget in 2024 contributed to it posting non-cash goodwill and property accounting impairments of £208.5m for the year.
The pub behemoth has signalled its future growth with the approval of a £40m brewery in Bury St Edmunds, set to be operational by 2027.
Greene King's chief executive Nick Mackenzie expressed that "2024 was a year of transition for Greene King as we shifted our focus from business transformation to deliver and began leveraging our industry-leading investment programme."
He added, "Pleasingly, we delivered topline revenue growth and have grown ahead of the market."
Mackenzie noted, "While our tight control of costs meant we also delivered an increase in adjusted operating profit, our statutory results were impacted by the outlook for the industry, which was compounded by decisions made in the government's Budget which have dramatically increased our costs."
He continued, "Whilst we maintain our focus on creating an agile business with a tight grip on what is within our control, the industry continues to face a layering of costs which is changing the fundamental economics of the pub."
The CEO called on the government, saying, "We would encourage the government to urgently introduce the promised business rates reform, reduce regulation and the cost of doing business to ensure that our critical sector is protected and pubs remain at the heart of communities º£½ÇÊÓƵ wide."
Mackenzie concluded by thanking his team and pub partners, "I want to thank our team and pub partners who have remained tenacious and dedicated amidst what continues to be a very challenging time for our industry.
"We we move into a new phase, leveraging the investment of recent years, we will continue to invest with a focus on our people, being customer-first and brand-led and on further enhancing the digital experience.
"We remain confident in our brands, our people and our ability to deliver for our loyal customers."
