Marston’s in line for expectations after encouraging Christmas

WOLVERHAMPTON pubco Marston’s has said profitability remains in line with expectations following an encouraging trading performance over the Christmas and New Year period.

In a trading update ahead of its AGM, the firm said that in the 16 weeks to January 19, 2013 it had made good progress in each of its trading segments despite broader economic challenges.

In its managed pubs, it said that despite the significant impact of snow in the week ended January 19, like-for-like sales for the 16 week period were 1.2% ahead of last year.  Like-for-like sales for the 15 week period to January 12 were 2.1% ahead of last year, including like-for-like food sales growth of 3.5% and like-for-like wet sales growth of 1%.  

Like-for-like sales in the seven weeks to January 12 were up 2.2%, against growth of 8% in the same period last year. Trading over the festive period was said to be strong including growth of 5.8% in the key three-week trading period to January 5 and 10% on Christmas Day.

Operating margins are slightly ahead of last year and it said its plans for building new pub-restaurants in the current financial year remained on track.

Profits continue to grow in its tenanted and franchised pubs. Profits for the 16-week period are estimated to be around 2% above last year, which it said reflected the continuing success of its franchise model, now operating in around 550 pubs, together with stability in the traditional tenanted estate.

In brewing, profits are in line with expectations. It said its brand performance had been very strong and ahead of the market, with own-brewed beer volumes 5% above last year driven by significant growth in the off-trade.  

Net debt and cash flow are also in line with expectations.

Ralph Findlay, Chief Executive Officer, said: “The results for the year to date are further evidence that our strategy is appropriate for the current environment and is generating consistent and encouraging results.”
   
The company will announce its interim results for the 26 weeks to March 30, 2013 on May 16, 2013.

 

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