Marston’s Breaks Through £1.1 Billion Revenue Barrier
Marston’s, the UK pub operator and brewer, has reported record revenue and underlying profit before tax growth for the 52 weeks ended 29 September 2018. Total underlying revenue increased by 14.9% to £1.140 billion, reflecting the rollover benefits of the acquisition of the Charles Wells Beer Business from the previous year, new distribution contracts in its brewing operation, the positive impact of new openings and pub acquisitions, together with positive like-for-like sales in Marston’s pub business. Underlying operating profit rose 4.6% to £182.5 million.
Underlying profit before tax was up 3.9% to £104.0 million, aided by the strong performance of the group’s Brewing and Taverns divisions. On a statutory basis, revenue was up 13% and profit before tax was £54.3 million.
Total revenue at the Destination and Premium division increased by 2.9% to £450.7 million reflecting the performance of new-build pub-restaurants offset by a decline in like-for-like sales. Underlying operating profit of £89.4 million was up 0.6%. Profit per pub is 3% down compared to the previous year.
Total revenue increased by 3.6% to £312.0 million at the Taverns division, principally reflecting like-for-like sales growth in the year in its managed and franchised pubs. Operating profit was up 2.4% on last year reflecting growth in the core business offset by disposals. Profit per pub was up 4% on last year.
In the Brewing division total revenue increased by 49.3% to £377.7 million, principally reflecting the annualised benefit of the acquisition of Charles Wells Beer Business in June 2017 and the benefits of the new distribution contracts secured in the year. Underlying operating profit increased by 25.5% to £32.0 million.
Ralph Findlay, chief executive of Marston’s, comments: “Marston’s has performed well in a difficult market. Our balanced business model has stood us in good stead, delivering record sales and underlying profits with revenue exceeding £1.1 billion for the first time. Our Taverns wet-led community pubs and market-leading brewing business had an outstanding year, more than offsetting the effects of weather volatility and the World Cup on our food-led pubs.
“Macro-economic and political uncertainty is reflected in our capital plans this year. However, the outlook for good pubs and brewing remains attractive and Marston’s is well placed to leverage the opportunity this presents with our high quality, well invested estate, leading brands and great people. We expect to make positive progress once again in the current financial year.”
