Marston's PLC Year-End Trading Update (1221T)
October 10 2017 - 1:00AM
UK Regulatory
TIDMMARS
RNS Number : 1221T
Marston's PLC
10 October 2017
10 October 2017
MARSTON'S PLC
YEAR-END TRADING UPDATE
Marston's PLC issues the following update on trading for the
year ended 30 September 2017. The preliminary results will be
announced on 30 November 2017.
Trading
We made further progress in implementing our strategy, achieving
growth in revenue and earnings led by the performance of wet-led
pubs and brewing.
In Destination and Premium, like-for-like sales were 0.9% above
last year. The more subdued summer trading and relatively stronger
performance of wet sales compared to food sales was consistent with
the market. 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. These
wet-led community pubs continue to benefit from greater consumer
interest in local beers and craft drinks and the continuing
development of our offers, together with the continued strong
performance of pubs operated under franchise-style agreements.
In Leased, like-for-like profits are estimated to be up 1%
compared to last year reflecting the high quality of our Leased
estate, together with licensee stability.
In Brewing, we have had a transformational year including the
successful acquisition of the Charles Wells Brewing and Beer
("CWBB") business in June, and growth in distribution through
entering into long term agreements including Punch B and Hawthorn
Leisure. The integration of CWBB is on track, and performance is in
line with our expectations. Own-brewed volumes increased 6%
demonstrating the strength of our brand portfolio and the
acquisition of CWBB, and contributed to market share growth in the
on trade and the off trade.
Estate Expansion
We 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 we now expect to open 15 pubs and
bars, and six lodges. This modest trimming of our openings
programme reflects a degree of caution given recent subdued market
conditions, but our investment criteria are unchanged. Our new pubs
continue to open strongly and the performance of those opened in
recent years remains good and in line with targets. We remain
confident that investment in new pubs and bars creates shareholder
value, and is an important component of our strategy to achieve
organic growth. We have a good pipeline of sites beyond 2018.
Outlook
Sales and profits for the year are ahead of last year, and we
target further growth in 2018. There is no significant change to
the cost trends highlighted previously, but we have identified cost
savings of approximately GBP5m per annum including the recently
announced reorganisation of the pub operational structure,
demonstrating that we are alert to opportunities to mitigate
ongoing cost increases.
Ralph Findlay, Chief Executive Officer, commented:
"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."
ENQUIRIES:
Marston's PLC Tel: 01902
329516
Ralph Findlay, Chief Executive Officer
Andrew Andrea, Chief Financial and
Corporate Development Officer
Instinctif Partners Tel: 020 7457
2020
Justine Warren
Matthew Smallwood
NOTES TO EDITORS
-- Marston's is a leading pub operator and independent brewer.
-- It has an estate of around 1,550 pubs situated nationally,
comprising managed, franchised and leased pubs.
-- It is the UK's leading brewer of premium cask and bottled
ales, including Marston's Pedigree, Thwaites Wainwright, Lancaster
Bomber and Hobgoblin. The beer portfolio also includes Banks's,
Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers.
Following the acquisition of Charles Wells brewing and beer
business, Marston's has added Bombardier, Courage and McEwan's to
its brand portfolio most recently, as well as the license to brew
and distribute Estrella Damm and Young's beers.
-- Marston's employs around 15,000 people.
This information is provided by RNS
The company news service from the London Stock Exchange
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