24th Jan 2023 10:02
(Alliance News) - Marston's PLC and City Pub Group PLC on Tuesday both said sales were ahead of pre-virus levels over the festive period, as enough punters still went to pubs for the duo to weather the UK train strikes and benefit from the football World Cup.
City Pub said it lost GBP750,000 in revenue due to the industrial action, while Marston's made no reference to rail strikes.
Marston's said sales in the 16 weeks to January 21, so including the key Christmas period, were 13% higher year-on-year. It lapped a Covid-19-hit comparative, when the Omicron variant emerged.
In the final half of that 16-week period alone, sales surged 19% on-year like-for-like.
Against three years earlier, so prior to the onset of Covid-19 measures, like-for-like sales in the 16 weeks were up 4.5%. In the final eight weeks, they climbed 4.1%.
Marston's also offered figures for combined sales in five key festive dates: Christmas Eve, Christmas Day, Boxing Day, New Year's Eve and New Year's Day. Like-for-like sales on those days were 26% higher on a year earlier and 13% higher than pre-virus levels.
City Pub, meanwhile, said like-for-like sales rose 7.8% in its fourth quarter ended December 25. City Pub said its growth was due to "improved planning" to take advantage of sales-boosting events such as the run-up to Christmas and the World Cup.
"The performance would have been even better, had it not been for the rail strikes, especially those towards the end of the year, where we estimate lost revenue to be in the region GBP750,000," City Pub added.
"Whilst the comparative period in 2022 was impacted by Omicron, trading in the first 4 weeks of 2023 has begun well with LFL sales against 2022 up 25% and above expectations."
City Pub, said Chief Operating Officer Toby Smith will step down on Friday. Managing Director Rupert Clark, already sitting on the board, takes over.
Both pub chains said they have made moves to keep a lid on energy costs. City Pub said 40% of its energy costs are hedged from April 2023 and March 2025. Marston's said electricity costs are now hedged for the entirety of its financial year until the end of September. Its gas price is fixed until the end of March 2025.
All-in-all, it was a promising set of trading statements for the pub firms and comes ahead of an update from larger peer JD Wetherspoon PLC on Wednesday. Earlier in January, Mitchells & Butlers PLC, which owns All Bar One, had said sales in the five weeks to January 7, surged 19% year-on-year.
Marston's Chief Executive Andrew Andrea said on Tuesday: "The pub clearly remains an affordable treat which is attractive to consumers."
Fuller, Smith & Turner PLC, however, on Monday had warned that annual earnings will be below market expectations due to the rail strikes.
Marston's shares were 6.8% higher at 43.62 pence each in London on Tuesday morning. City Pub was down 1.2% at 73.63p, reversing course after rising 1.7% in early trade, while Wetherspoon's was up 0.6% at 478.80p. Mitchells was up 1.5% at 171.20p. Fuller's was up 0.4% at 476.80p, though it had lost 3.9% on Monday.
By Eric Cunha, Alliance News news editor
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