Marston’s has reported improved profitability in its results for the 52 weeks ended 1 October 2022, with a profit before tax of £163.4, compared to a loss of £171.1m in 2021.
Total revenue was £799.6m, up from £401.7m in 2021, while pub operating profit rose to £5.7m from a loss of £90.5m in 2021.
The 1,468-strong pub operator reported “more normalised” trading despite the Omicron disruption during the period, will full year like-for-like (lfl) sales 99% of 2019. Lfl sales were 3% up on 2019 and 4% on 2021 in the final 10 weeks of FY2022.
Lfls were 6.8% up on 2021 in the past eight weeks, while lfl drink sales were 50% up on 2021 during the two England World Cup games.
Drink sales outperformed food sales during the period, “demonstrating the trading resilience of the Group’s predominantly community pub estate,” according to the update. Marston’s will continue to invest in repositioning its estate into a simplified format structure to generate strong returns, with 22 conversions completed from the Two for One format.
The company believes it is well placed to meet challenging market conditions, with a “well-positioned, predominantly freehold pub estate with limited exposure to city centres.”
The simplification of menus has also driven guest satisfaction and spend per head, as well as enhanced operational and purchasing efficiency to help manage inflationary pressures.
Marston’s has also commenced a new digital strategy following the appointment of a director of digital, while enhancing its engagement and training programmes for staff.
CEO Andrew Andrea said: “I am pleased to report a strong performance over the last 12 months evidenced by a doubling of revenue growth, a return to profit and steady progress with our debt reduction strategy. We have a clear and focused strategy which provides a strong platform for future growth, and it is encouraging to see the actions and initiatives which we have undertaken in 2022 beginning to deliver positive results.
Demand for our predominantly community-based pubs continues to be encouraging despite ongoing macro uncertainty and our estate is well-placed to benefit from changing patterns in consumer behaviour. We are managing cost inflation well and remain confident that our commitment to continue to reduce the Group’s debt and return sales to back to £1 billion will drive NAV and shareholder value.
Current trading to the end of November has been positive with encouraging levels of Christmas bookings as we look forward to the first restriction free festive period in three years. Additionally, the World Cup has benefited trading, delivering like for like drink sales of c.+50% for the home team games. Whilst uncertainty remains, Marston’s remains well-financed and in great shape to weather the challenges ahead with the right formula, the right strategy and the right team to continue to make progress and deliver shareholder value.”
