24th Jul 2019 09:23
(Alliance News) - Pub operator Marston's PLC said Wednesday that it achieved growth in its pub and beer businesses despite recent sales falling on last year's comparative which featured the FIFA World Cup and warm weather.
For the 42 weeks to July 20, the company said like-for-like managed and franchised pub sales rose by 0.5% but in the last 16 weeks, sales declined year-on-year.
The company's Destination and Premium businesses like-for-like sales for the 42 weeks grew 0.1% year-on-year and in Taverns, like-for-like sales were 1.1% ahead of the same period in 2018.
Its Beer Company had volumes in line with last year but performance over the last 16 weeks reflected weaker lager sales. This segment of the company is outperforming the rest of the market however, Marston's said.
In January, the company said it planned to reduce net debt by GBP200 million by 2023 through reduced spending and GBP120.0 million in disposals.
The company said on Wednesday however, that it would "accelerate the time frame within which the debt reduction target is achieved".
The company said it will defer GBP70.0 million of new-build investment that it had planned for the next three years, reallocating at least GBP20.0 million of the funds into "organic capital plans".
The company said the reallocation will have a "minimal" impact on earnings and generate an extra cash flow between GBP40.0 million and GBP50.0 million over the next three years.
Chief Executive Ralph Findlay said: "We have achieved modest growth during the 42 weeks to date continuing the long term positive like-for-like sales trend despite May and June being hampered by relatively poor weather. We have a high-quality, balanced pub estate and a highly disciplined approach to preserving margin, together with a leading beer business which continues to perform well leveraging our outstanding brand portfolio and increasing our market share."
Shares in Marston's were down 9.6% at 110.08 pence each in London on Wednesday morning.
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