24th Jan 2020 08:13
(Alliance News) - Wolverhampton-based pub operator Marston's PLC on Friday reported a solid performance in its financial year to date, with strong growth in sales over the key Christmas period.
In the group's Pubs segment, total managed and franchise like-for-like sales for the 16 weeks to January 2020 grew by 1.0% , as stronger drinks sales more than offset a weak performance in food.
Over the Christmas period, like-for-like sales grew by 4.5%, compensating for subdued trading in the first three weeks of December caused by bad weather.
In Marston's Beer Company, volumes were behind the prior year, due to a weaker performance from the Off-Trade segment in December, particularly with lager sales.
Looking ahead, costs for the second half of Marston's financial year are expected to increase by between GBP2 million to GBP3 million, following an 6.2% increase in the National Minimum Wage.
In addition, Marston's said it will reduce its borrowings by GBP200 million by 2023. To this end, Marston's has increased the target for disposal proceeds to the range of GBP85 million to GBP90 million from GBP70 million.
"Marston's has delivered a creditable performance in a challenging market. Trading in the key Christmas fortnight was good and has remained solid since which is encouraging. Our balanced pub portfolio enables us to perform well in the context of current market dynamics and our market-leading Beer Company has continued to increase market share in both the on and the off trade in the period. We are making excellent progress on our debt reduction strategy, well ahead of the original 2023 target," said Chief Executive Officer Ralph Findlay.
Shares in Marston's were down 4.4% at 112.00 pence each in London on Friday morning.
By Dayo Laniyan; [email protected]
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