Marston’s Reports Another Period of Good Growth
Marston’s, the UK pub operator and independent brewer, has reported a 4.6% increase in underlying operating profit to £74.3 million and a 19.8% rise in underlying revenue to £528.1 million for the 26 weeks ended 31 March 2018, with growth in all trading segments principally driven by the acquisition of the Charles Wells Beer Business, the contribution from new openings and pub acquisitions and positive like-for-like sales in its Taverns business. Total managed and franchised pubs like-for-like sales were in line with last year with growth in Taverns offset by weaker sales in Destination and Premium oulets, which were impacted by the poor weather in the period.
Underlying profit before tax was up 7.7% to £36.3 million, driven chiefly by strong Brewing and Taverns performance.
Total revenue at the Brewing operation increased by 79.2% to £169.2 million, principally reflecting the acquisition of the Charles Wells Beer Business in June 2017 and continued growth in ale volumes in the core business. Underlying operating profit increased by 28.8% to £13.4 million. Operating margin of 7.9% was below last year due to the Charles Wells Beer Business, which has historically operated at a lower margin.
Ralph Findlay, chief executive of Marston’s.
Marston’s has a wide portfolio of beers which account for 1 in 4 premium bottled ales and around 1 in 4 premium cask ales sold in the UK. The portfolio was enhanced in 2017 by the acquisition of the Charles Wells Beer Business, which included the Bombardier, Youngs, McEwans and Courage brands. 88% of Brewing sales are outside Marston’s own pubs.
Ralph Findlay, chief executive of Marston’s, says: “We are pleased to report another period of good growth in revenue and underlying profit before tax. Strong trading in Brewing and Taverns and Leased pubs offsets the adverse impact of poor weather on ‘drive-to’ pubs in our Destination estate, further validating the resilience of our model. We have made modest and prudent adjustments to our capital plans to reflect the current economic and consumer climate. However, Marston’s is a balanced business and we are confident that the medium-term outlook for the eating-out and wet-led pub sectors remains good and that targeting an increased profitable share of a growing market through an unremitting focus on quality, service, standards and value for money remains key.”
