Continued Growth by Marston’s
Marston’s, a leading British pub operator and independent brewer, has reported a 4.7% rise in underlying revenue to £553.1 million for the 26 weeks ended 30 March 2019, reflecting strong growth in its brewing business, the contribution from new openings and pub acquisitions and positive like-for-like sales in its pub businesses. Underlying operating profit at £76.1 million was up 2.4% on the corresponding period of the previous year. Underlying profit before tax was up 1.9% to £37.0 million, reflecting growth in each of Marston’s trading segments offset by higher finance costs.
Total revenue in the brewing business increased by 8.3% to £183.2 million, principally reflecting the continued growth in own-brewed and licensed volumes and new distribution contracts described above. Underlying operating profit increased by 8.2% to £14.5 million. Operating margin of 7.9% was in line with previous year reflecting a stabilisation of margins following the acquisition of the Charles Wells beer business in 2017.
Ralph Findlay, chief executive of Marston’s, comments: “I am pleased to report continued growth across all segments of the business. Our Taverns wet-led community pubs have built on the strong trading performance last year and it is particularly encouraging to see our food-led pubs once again achieving increasing momentum in profitable like-for-like sales growth. Our leading Brewing business goes from strength to strength, winning new distribution contracts and continuing to grow market share.
“We remain focused on our strategic objectives and good progress has been made with our stated aim to improve cash generation and reduce the group’s leverage. Whilst the backdrop of ongoing uncertainty around Brexit continues to be challenging, opportunities for growth remain and we are confident of delivering another year of profitable growth for our shareholders.”
