(Reuters) - British pub landlord EI Group posted a small increase in comparable income at its pub estates in the recent 18-week period and warned that market conditions for pubs were challenging.
The firm, with over 4,500 properties, said tough market conditions and unhelpful weather had some impact on its performance as its leased and tenanted estate reported a like-for-like net income growth of 0.5 percent.
However, its managed pubs posted a like-for-like sales growth of 6.8 percent in the period with beer sales driving sales. [nRSH2484Ea]
EI Group, formerly known as Enterprise Inns plc, said it also faced cost headwinds.
Like other operators in the British pub sector such as Marston’s, EI Group is also battling higher costs, most notably from wage inflation, rising property prices and unfavourable currency exchange rates.
(Corrects to add dropped words in fifth paragraph.)
Reporting by Rahul B in Bengaluru; Editing by Gopakumar Warrier