Marston’s finds the right pedigree as H1 revenues climb 11.5%
WOLVERHAMPTON pubco and brewer Marston’s has seen an 11.5% increase in half year group earnings following a strong trading performance across its various operations.
For the 26 weeks ended April 2, 2016 revenue rose to £428.7m, with underlying pre-tax profit showing a similar trend, up 11.8% to £33.1m. Underlying earnings per share rose 11.9% to 4.7p per share.
Importantly the group saw profit growth in all its trading segments, which with tough second half comparatives will help full year targets.
There was a like-for-like sales growth of 3% across the managed and franchised pubs during the period, which also saw the opening of seven pubs and three lodges.
The period also saw the opening of the first new-build Tavern, while the various leased businesses delivered like-for-like profit and rental growth.
The average profit per pub was up 13% in 2016 – and has risen 44% since 2012.
The group’s market-leading brewing operation also saw a strong first half, boosted by the acquisition of Thwaites.
It said the Thwaites addition had helped to drive underlying operating profits by 16%, while across all brands volumes were up 22%.
The group’s share of the premium cask ale market rose 1.5%, with the bottled ale segement up 1.1%.
The performance to date is said to be in line with expectations, with the target for the full year being the opening of at least 20 new pubs, including two Revere bars. It also plans five new lodges.
Commenting on the performance, Ralph Findlay, Marston’s CEO said: “We are encouraged by our first half performance and are on track to meet our expectations for the year. In pubs, we have driven our growth by the organic development of pub-restaurants and franchise-style pubs, and more recently through investment in lodges and premium bars, widening our appeal. In Brewing, we had an excellent first half year and achieved good growth through our industry-leading brands and service.”
“We are pleased to report good progress in implementing our strategy, including double digit growth in underlying earnings and profit growth in all of our trading segments.”
