21st Jan 2014 09:12
LONDON (Alliance News) - British brewer and pub operator Marston's PLC Tuesday said trading in the financial year to date has been "encouraging", with profitability in line with expectations, boosted by good trading over the Christmas and New Year period.
The brewer, which also operates managed, tenanted, leased and franchised pubs, said that it achieved like-for-like sales growth across is business estate.
"Our performance in the first quarter has been good and, encouragingly, we have achieved growth in each of our key trading divisions," said Chief Executive Officer Ralph Findlay in a statement.
Marston's said that in its destination and premium pubs division like-for-like sales for the 15 weeks period ended January 18, were 4.1% ahead of last year, including like-for-like food sales growth of 5.6% and wet like-for-like sales growth of 2.2%. It said that in the key three-week Christmas trading period to January 4, trading was strong with growth of 3.3%.
The group said operating margins in its destinations and premium division are slightly ahead of last year, and its plans for 25 to 30 of new-pub restaurants in the current financial year are on track, with eleven openings expected in the first half.
Marston's said that profits from its leased pubs are expected to be around 1% ahead of last year. Although volumes were just below last year for the period, continued growth in premium ales has widened operating margins, meaning profits for the period will be slightly ahead of last year, the company said.
In Marston's taverns, managed and franchise pub segment, like-for-like sales were 3% ahead of last year, supported by strong Christmas and New Year trading.
Marston's said ts net debt and cash flow are in line with expectations, and the group expects to release its interim results for the 26 weeks to April 5 on May 15.
Shares in Marston's were trading at 154.89 pence per share Tuesday morning, up 1.1%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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