9th Oct 2024 08:44
(Alliance News) - Marston's PLC on Wednesday backed full-year guidance despite growth slowing in the fourth quarter of the financial year.
The Wolverhampton, England-based pub operator said total retail sales in the group's managed and franchised pubs for the 52 weeks to September 28 were 5.8% higher than the prior year, with growth in like-for-like sales of 4.8%.
"Both food and drink occasions have shown good momentum, with food sales particularly encouraging as our high-quality offering and simplified menus have resonated well with guests," Marston's said in a statement.
In the final 13 weeks of the financial year, like-for-like sales increased 3.8%, which the firm said is a "strong result" despite the "very wet weather" towards the end of the period.
Food sales in this period performed exceptionally well, the company noted.
Marston's said the strong trading performance and growth ahead of the broader market, coupled with the continued focus on driving cost efficiencies, gives it confidence in delivering pub profitability in line with market consensus for the financial year.
The company put the market consensus for underlying pretax profit, excluding the contribution from Carlsberg Marston's Brewing Co, at GBP40.5 million.
In July, the firm said it had completed the sale of its 40% stake in the Carlsberg Marston's Ltd joint venture to a subsidiary of Carlsberg AS. Earlier that month, Marston's had announced the sale, which is for GBP206 million in cash.
Reflecting the strong trading, Marston's said it expects net debt, excluding IFRS 16 lease liabilities, for the full year to be around GBP885 million, a reduction of around GBP300 million on the year prior.
Chief Executive Justin Platt said: "'The strong revenue performance is very pleasing."
Marston's will host an Investor Day next Wednesday and release full-year results in December.
Shares in Marston's rose 2.3% to 43.85 pence each in London on Wednesday morning.
By Jeremy Cutler, Alliance News reporter
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