Marston's reports revenue boost due to summer's ‘warm weather'
Pub group Marston's has reported a 10.9% increase in like-for-like sales in the 16 weeks to 22 July 2023, as it said the level of "customer demand continues to be good".
In a statement released on its website on Wednesday (26 July), it said the increase in sales reflected the warmer weather in June.
It said strong drink and food sales demonstrate the "steadfast trading resilience of our predominantly community pub estate".
Marston's has previously said it continues to mitigate rising food, drink, labour and energy costs, as well as the impact of rail and tube strike, as over 90% of its estate is located in suburban areas.
Like-for-like sales for the 42-week period were up 10.7% compared to the 2022 financial year. Total retail sales in the group's managed and franchised pubs for the 42-week period were up 12% on last year.
It also said that dividends from Carlsberg Marston's Brewing Company (CMBC), in which it holds a 40% stake, are expected to be £11m in the second half of FY2023.
It reiterated reducing the group's debt to below £1bn continues to be a key focus of its financial strategy. The company anticipates that net debt will have reduced by £50m-£60m at the end of the 2023 financial year.
Chief executive Andrew Andrea said: "Marston's has delivered another strong trading performance, validating the strategy we are implementing and demonstrating the appeal of our pubs.
"We are making good progress and are beginning to see the benefits of the actions we have taken in the first half, simplifying our trading formats and repositioning our pub portfolio, as well as the investments we have made in our pub gardens and outside trading areas.
"We remain focused on delivering on our debt reduction strategy and continue to make good progress in that regard. Whilst macro-economic challenges persist for the time being, we remain encouraged by the group's trading resilience and that the pub remains an affordable treat for our guests. An improving cost outlook, together with the actions we are taking to maximise efficiencies, leaves Marston's well-placed to navigate through ongoing economic headwinds."
Marston's operates 1,440 pubs across the UK and employs around 11,000 people.
Continue reading
You need to create an account to read this article. It's free and only requires a few basic details.
Already subscribed? Log In
