Marston's reports 10% revenue boost to £407m
Pub group Marston's has reported a 10.1% increase in revenue to £407m in its interim results for the 26 weeks to 1 April 2023, reflecting the business' continuing recovery.
Like-for-like sales for the period were up 10.7% compared to last year and up 17.9% compared to the 2020 financial year. Drink sales continue to perform well and food sales were "encouraging" with the gap between the two narrowing, the group said, despite the economic environment.
During the period, the group generated £24.3m from "non-core strategic disposals" with the intention to convert the remainder of its tenanted and leased estate to turnover-based models in the medium term. This year, the group said it expected to dispose of £50-60m of non-core and unlicensed properties in total.
Of Marston's 1,440 pubs across the UK, 246 are operated under the tenanted and leased model. Most of its estate repositioning is expected to be completed by the 2026 financial year. The group employs around 11,000 people.
Chief executive Andrew Andrea said: "The strategy which we outlined 18 months ago is progressing well and generating positive results which is pleasing. Our H1 performance clearly demonstrates that consumers remain as keen as ever to celebrate – and socialise within – the great British pub. The macro environment is becoming increasingly stable and recent evidence suggests that both the cost outlook, and consumer confidence, are steadily improving. The actions we are taking are building a demonstrably better business and Marston's predominantly community pub estate continues to benefit from changing consumer lifestyles.
"We continue to deliver upon our clear strategic objective to reduce debt and progress our path to profitability, albeit the seasonality of our trading profile means that the majority of the group's profit is characteristically H2 weighted. We have invested ahead in H1, to capitalise on the benefits of this in H2, and remain on track to meet our operating profit, cash generation and debt reduction targets for the year. We look forward to delivering further positive progress as the year unfolds and remain confident that we have the strategy and the team in place to do so, maximising the opportunities open to us in the future and delivering shareholder value."
The company said trading since the half year end was "strong" with like-for-like sales in its managed and franchised pubs up 7.9%. Sales across the Easter weekend and first May bank holiday were also strong compared to last year, with a sales uplift over the Coronation weekend overall, with better performance on the days with good weather.
Marston's said it was continuing to mitigate rising food, drink, labour and energy costs, and with over 90% of its estate located in suburban areas, this had largely insulated it from the impact of rail and tube strike challenges.
The group's primary corporate goals by 2026 are hitting £1b in sales and reducing the group's debt to below £1b.
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