Marston’s, the leading pub operator and independent brewer with an estate of around 2,150 pubs has issued an interim management statement for the 16 weeks to 19
Trading performance during the Christmas and New Year period is encouraging. Profitability is in line with expectations and good progress is being made in each of the trading segments despite the broader economic challenges.
In managed pubs, despite the significant impact of snow in the week ended 19 January, like-for-like sales were 1.2% ahead of last year. Like-for-like sales for the 15 week period to 12 January were 2.1% ahead of last year, including like-for-like food sales growth of 3.5% and like-for-like wet sales growth of 1.0%.
Trading over the festive period was strong including growth of 5.8% in the key three week trading period to 5 January and 10.0% on Christmas Day. Operating margins are slightly ahead of last year and plans for building new pub-restaurants in the current financial year remain on track.
In tenanted and franchised pubs, profits continue to grow. Profits for the 16 week period are estimated to be around 2% above last year reflecting the continuing success of the franchise model, now operating in around 550 pubs, and stability in the traditional tenanted estate.
In brewing, profits are in line with expectations. Brand performance has been very strong and ahead of the market, with own-brewed beer volumes 5% above last year driven by significant growth in the off-trade.
Ralph Findlay, Chief Executive Officer, commented:
“The results for the year to date are further evidence that our strategy is appropriate for the current environment and is generating consistent and encouraging results. We expect economic pressures to continue to constrain consumer confidence, and see no evidence that the Government recognises the damage being caused to pubs by high taxation and over-regulation. Nevertheless, we are confident of making further progress towards our objectives of sustainable growth, higher return on capital and reduced leverage.”