Strong sales growth at Marston's
Brewer and pub operator Marston's has reported a rise in profits after sales grew across all three of its business units in the six months to the end of March.
Underlying profit before tax grew 1.5 per cent to £41.6m, with turnover up 8.5 per cent to £305.3m. Acquisitions, including the Eldridge Pope business added in January, added £13.4m to the coffers.
The Marston's Inns and Taverns managed business saw like-for-like sales grow by 7 per cent. In the Marston's Pub Company tenanted operation, average EBITDA per pub grew by 15 per cent.
Brewing arm Marston's Beer Company saw market share and volume growth for key brands.
Marston's chief executive Ralph Findlay said: "We continue to benefit from targeting the growing pub food market in both managed and tenanted pubs.
"Our new-build programme, the acquisition of Eldridge Pope and the recent disposal of 279 tenanted pubs mean that the quality of our principally freehold pub estate continues to improve, and that food sales continue to increase as a proportion of our turnover.
"We are also achieving growth and greater market share in our key ale brands, particularly Marston's Pedigree and Jennings Cumberland Ale."
The company said trading in its 182 pubs in Wales has been 'encouraging' since the smoking ban came into force last month, "although it is too soon to draw conclusions about the impact of the ban".
In England, more than 90 per cent of pubs have gardens, patios or some form of outside trading area. The company said: "We have made excellent progress in developing our food offers in Marston's Inns and Taverns, with food sales now comprising 33 per cent of total retail sales within our managed pubs.
"The disposal of 279 smaller tenanted pubs, representing some 14 per cent of our tenanted and leased estate, has reduced significantly our exposure to those pubs which are most vulnerable to the impact of the ban."
