Marston’s predicts profitability in line with expectations after good Christmas

WOLVERHAMPTON pubco and brewer Marston’s has said full year profitability is likely to be in line with expectations following good trading over the festive period.

The Banks’s and Pedigree brewer said in a trading statement ahead of its AGM that its Destination and Premium operation had seen like-for-like sales up 2% on last year with both food and drink like-for-like sales growth of 2%.  

In the key two week Christmas trading period to January 4, trading was particularly strong with growth of 4.8%, including 12.5% growth on Christmas Day.  Operating margins are ahead of last year and the firm said its plans to open at least 25 new-pub restaurants in the current financial year were on track, with eight openings expected in the first half.
 
In Taverns, its managed and franchise operation, like-for-like sales were similarly 2% ahead of last year, with 2.7% growth over the Christmas fortnight and 5.8% growth on Christmas Day. It said its franchise model continued to prove successful, providing motivated licensees with local flexibility and reduced risk while improving the offer to the consumer.
 
In Leased, profits were around 1% ahead of last year, while the firm’s Brewing arm saw strong growth with ale volumes up 4% in the year to date, underpinned by a very strong performance in the off-trade, with volumes up 8%.  Hobgoblin, the firm’s biggest brand, continued to perform well, with volumes up 10% in the year to date.
 
Ralph Findlay, chief executive, said: “We have again traded well over the Christmas period, with good sales growth over the key Christmas fortnight for the third year in succession, including serving a record 60,000 meals on Christmas Day.  This performance demonstrates that our customers remain attracted to the consistency and value for money we offer, underpinned by excellent service in a high quality environment.  

“In addition, our Beer business continues to perform well, with a particularly strong performance in the off-trade.  We remain confident of achieving our expectations for the full year.”