World Cup helps brewer score record revenue and profit
Brewer Marston’s has posted record revenue and profit, boosted by strong trading during the World Cup and warm summer weather.
The Wolverhampton-based company reported a 15% rise in group turnover to more than £1.1bn for the year to the end of September, while Marston’s said it anticipates reporting underlying profit before tax of around £104m, up from £100.1m in 2017, with higher operating profits in each of its trading segments offset by higher interest charges.
Total pub sales increased 3.2%, including like-for-like sales growth of 0.6% and the contribution from its pub expansion programme. In the most recent 10 weeks, like-for-like sales were up 1.6%.
The company said it is continuing its estate expansion, opening 14 pub restaurants and bars and seven lodges in the year. As previously reported, Marston’s plans to open 10 pub restaurants and bars and five lodges in 2019.
Marston’s also announced it has reached agreement to acquire 15 former Mitchell’s & Butlers’ pubs from Aprirose, a property investment company.
The group said: “We expect to complete and lease-fund this acquisition in the first half of 2019 and will invest approximately £4m post acquisition with a target EBITDA of around £500,000 in 2019 and at least £1m in 2020.”
Ralph Findlay, chief executive, said: ”2018 was a strong year for our Taverns and Beer businesses. We have seen clear benefit from our balanced portfolio having achieved good growth in wet-led pubs and from brewing, maximising the trading opportunities provided by the good summer weather and World Cup.
“This year has been transformational for our market-leading beer business, with the benefits of the acquisition of CWBB and the new distribution contracts delivering strong profit growth. Although trading in Destination food-led pubs was weaker, this predominantly reflects issues beyond our control relating to unseasonal weather extremes and the World Cup. However we are encouraged that our dining pubs are now seeing improving momentum and we expect to make further progress in 2019. We are meeting the demands of our customers and continue to manage the inflationary cost environment well, which gives us confidence for the future.”
