Marston’s continues to make “profitable progress”
A TRADING update from Wolverhampton pubco Marston’s has revealed the company is making steady, if unspectacular, progress.
The update for the 41 weeks to 18 July 2015 reveals that in its In Destination and Premium division like-for-like sales were 1.7% ahead of last year, including like-for-like food sales growth of 1.6% and like-for-like wet sales growth of 1.6%.
In the last ten weeks of the period, like-for-like sales are up 2.0%.
Operating margin is slightly above last year and Marston’s remains on track to complete 25 new-build pub restaurants in the current financial year.
In Taverns, like-for-like sales for the 41 week period were 1.7% ahead of last year and in the last ten weeks of the period, like-for-like sales were up 2.0%.
The pubco’s franchise business “continues to perform strongly” and now operates in around 550 pubs.
In Leased, profits for the 41 week period are estimated to be in line with last year. Average profit per pub was up 4%, reflecting. Marston’s suggests, a higher quality leased estate.
In Brewing, own-brewed beer volumes, excluding Thwaites, were up around 4% compared to last year. Including Thwaites – a rival brewery acquired by Marston’s – own-brewed beer volumes are up 10%.
Net debt and cash flow are in line with expectations.
Ralph Findlay, chief executive officer said: “Our investment in new-build pub-restaurants and premium pubs is in line with our plans and we have seen some of our most successful openings to date this year.
“We have also opened three lodges, and expect this rate of development to increase in 2016. We have good visibility over our site pipeline and remain focused on securing further good sites for our future growth.
“These investments, together with the disposal of smaller wet-led pubs and the growth of franchises, have successfully transformed our business over the last three years.
“In brewing, the post-acquisition integration of Thwaites’ brewing business is now complete and has gone well.
“Our strategy is well-suited to leveraging market growth in local, premium and craft beers, and the increasing importance of the off-trade.”
