Marston’s has reported like-for-like sales in its managed Destination & Premium arm up 0.9% in the year to 30 September.
The group said the more subdued summer trading and relatively stronger performance of wet sales compared to food sales was consistent with the market. It added that a disciplined approach to pricing and promotions and good cost control contributed to the operating margin in Destination and Premium being only slightly below last year despite the continued cost pressures.
In Taverns, like-for-like sales were 1.6% above last year, while like-for-like profits in the Leased division were up 1%.
The group said it had been a “transformational year” for the brewing side of the business, including the successful acquisition of the Charles Wells Brewing and Beer business in June, and growth in distribution through entering into long term agreements including Punch B and Hawthorn Leisure. Own-brewed volumes increased 6%.
During the year, Marston’s completed 19 new pubs and bars and eight lodges. Openings were weighted towards the end of the financial year, and four pubs planned for September will open in late October.
In the 2018 financial year it expects to open 15 pubs and bars, and six lodges. It said this modest trimming of its openings programme reflected a degree of caution given recent subdued market conditions, but the investment criteria are unchanged.
The group said it had identified cost savings of approximately £5m per annum including the recently announced reorganisation of the pub operational structure.
Chief executive Ralph Findlay said: “Our priority is to focus on quality, service and standards. We are well placed to continue to implement our growth strategy through investment in higher quality pubs and bars and through our unrivalled beer brand range supported by high customer service standards.’’
