Marston’s benefits from good Christmas as pub plan stays on course

WOLVERHAMPTON-based brewer and pubco Marston’s has said profitability remains in line with expectations following good trading over the Christmas and New Year period.

In a trading update covering the 15-week period to January 18 – issued in advance on its AGM, Marston’s said its Destination and Premium division had seen like-for-like sales improve 4.1% compared with last year, including like-for-like food sales growth of 5.6% and wet like-for-like sales growth of 2.2%.  

In the key three-week Christmas trading period to January 4, trading was strong with growth of 3.3%, following 5.8% growth in the corresponding period last year.  Operating margins are slightly ahead of last year and the business said its accelerated plans to open 25-30 new pubs and restaurants in the current financial year were on track, with 11 openings expected in the first half.
 
In Taverns, its managed and franchise pubs, like-for-like sales were 3% ahead of last year, with strong Christmas and New Year trading. It said its franchise model continued to prove successful, providing motivated licensees with local flexibility while improving the quality, consistency and value of the consumer offer, and reducing risk for the licensee.
 
In Leased, profits are estimated to be around 1% ahead of last year.
 
In Brewing, although volumes are just below last year, it said continued growth in premium ales had benefited operating margins, resulting in profits being slightly ahead.
 
Net debt and cash flow are said to be in line with expectations.
 
Ralph Findlay, Marston’s chief executive, said: “We traded well over the Christmas period as customers responded to our excellent value festive offers, with 55,000 meals served on Christmas Day – a record.

“Our performance in the first quarter has been good and, encouragingly, we have achieved growth in each of our key trading divisions.  We continue to strive to ensure that our pubs and beers meet the high standards our customers expect and provide outstanding value for money.”
    
The company is expected to publish its interim results for the 26 weeks to April 5, 2014 on May 15, 2014.