Food and drink sales improve for pub group Spirit

STAFFORDSHIRE-based pub company Spirit has reported strong sales across its managed estate with food and drink sales both increasing during the latest quarter.

However, its leased division still continued to under-perform, with net income down 3.3% in the period. The firm, listed earlier this year following its demerger from parent Punch Taverns, said this was in line with expectations.

“We have a high quality estate which is a potential source of growth for our managed estate through leased to managed conversions, of which we have converted five to date, as well as a strong source of cash generation for the business,” said the firm.

Overall, the group said it remained on-track to meet full year expectations.

During the last 16 weeks, like-for-like sales in its managed pubs rose 6.2%, with food sales up 7.9% and drinks 6.1%.

Mike Tye, who succeeds Ian Dyson as chief executive at the group’s AGM, said: “We are pleased with the continued progress we have made in the business, as we strive to become the best pub company in the UK. We have delivered another quarter of strong growth and have again outperformed the market. While we expect the economic and consumer outlook to be more challenging, we are on track to deliver our full year expectations.”

Former parent Punch said average net income per pub across its full estate was up 1.3%, benefiting from the ongoing disposal of non-core assets.

However, like-for-like net income from its core estate was down 1.5%, while in its non-core estate the figure declined 10.4%