Greene King - A0F66P

UPDATE 1-UK pub operator Greene King posts lower profit on weak spending, higher costs
(Adds details on outlook, market comments and background)
   June 28 (Reuters) - British pub operator Greene King Plc
on Thursday reported an 11.2 percent drop in full-year
adjusted pretax profit, hurt by softer consumer spending, higher
costs and bad weather at the start of the year.
   Shares of the pub operator, which owns ale brands such as
Greene King IPA, Old Speckled Hen and Abbot Ale, fell as much as
6 percent in morning trade.
   The company has been battling rising costs from the
government's minimum living wage increase, higher property
prices and unfavourable currency exchange rates.
   Greene King said it expected 45 million pounds ($58.83
million) to 50 million pounds cost inflation for the new fiscal
year, as several industry-specific input costs continue to rise
ahead of headline inflation.
   The company also said consumer confidence remained fragile,
despite a slight improvement since the end of last year.
   "The current trading environment is still characterised by
subdued consumer confidence, intense competition and rising
costs," the company said.
   Greene King, founded in 1799, operates 3,000 pubs,
restaurants and hotels across the UK.
   Comparable sales for Pub Company, Greene King's key growth
driver, fell 1.2 percent compared with a rise of 1.5 percent a
year ago, due to slower food sales and higher costs.
   Greene King said it was targeting a return to like-for-like
sales growth for Pub Company in the new financial year, as it