Increasing food sales were praised by Marston’s, the brewer and pub retailer, this morning as one of its main drivers for achieving 1.7% growth in like-for-like sales at its managed pub arm.
In a trading statement for the year to 2 October the group said like-for-like food sales were up by 2.5% at its managed pubs and accounted for around 40% of its sales. It said: “The success of our food offers and the implementation of our new-build strategy continue to drive growth.”
The company has opened 15 new-build sites this year, as planned, and reported that both turnover and profit performance in these outlets was ahead of target. The group will open 20 new-build sites next year and 25 in 2012.
Marston’s reported that earnings before tax and exceptional items were “in line” with expectations and it had seen, “improving trends in each of our trading divisions compared to last year”.
In its managed pubs it added that operating margins had improved this year, “largely as a consequence of tight operational cost control, lower utility costs and the disposal of 17 lower margin leasehold sites.”
Like-for-like wet sales also improved by 1.4% at its managed pubs.
At Marston’s Pub Company, the group’s leased and tenanted arm, like-for-like profits were estimated to be 3.7% below last year, where they stood at around –7%. However this was an improvement since Marston’s interims in May when the figure was –4.5%.
Approximately 86% of the estate is currently let on substantive agreements, including its newly developed retail agreements. It now has 104 such agreements in place and said performance of them was in line with expectations. Marston’s plans to have 500 of the agreements in place over the next three years.
At Marston’s Beer Company turnover and operating profit would be slightly ahead of last year, added the company. Own-brewed ale volumes were slightly lower than 2009 but “continued to significantly outperform” the UK market. Marston’s premium ale volumes increased by 3% during the year, it said.
In a statement, Marston’s said: “We have seen improving trends in each division and made good progress in implementing our strategy. Our focus on value for money, high quality pubs, food and local beers places us in a strong position to meet the challenges ahead.”
Marston’s will report its preliminary results on 2 December.
