8th Oct 2014 06:34
LONDON (Alliance News) - British brewer and pub owner Marston's PLC Wednesday said it expects to report an underlying operating profit "broadly" in line with expectations for its financial year just ended, buoyed by higher food sales and investment in new pub-restaurants.
The owner of Pitcher & Piano bars, said like-for-like sales in its Destination and Premium division, its pub-restaurant unit, grew by 3.1% in the financial year ended October 4, driven by a 3.3% increase in food like-for-like sales, and 2% growth in drink sales.
It said its operating margin is ahead of the prior year, having completed 27 new pub-restaurant openings during the year.
"We expect to continue to develop our Destination estate at a similar rate of growth for the foreseeable future and have a good pipeline with at least 25 sites planned for completion in the 2015 financial year," the company said in a statement.
The Wolverhampton-based group said its trading division Taverns, where it operates a number of inns and community pubs operated through managed, franchised and tenanted business models, delivered like-for-like sales growth of 2.1% during the year.
"Our franchise business, which now operates in around 540 sites, continues to perform strongly. In Leased, like-for-like profits are estimated to be up 3% against the comparative year," it said.
Marston's, the brewer of Pedigree and Hobgolblin ale, said its own brand beer volumes were in line with last year, while it saw strong performances in the sales of premium ales and the off-trade, where it said its continues to lead the market.
"We have made sound progress this year and expect to report underlying operating profit broadly in line with expectations," the company said in a statement.
Last year, the company reported an underlying operating profit of GBP168.3 million.
Its underlying figures strip out items such as one-off exceptional costs.
Numis upgraded Marston's to Buy from Add following the year-end trading update.
Marston's said it will release its full-year results on November 27.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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