Marston’s posts 5.2% lfl sales boost
The operator of c1,370 pubs said in its trading update for the 42 weeks to 20 July 2024 total retail sales in the group’s managed and franchised pubs increased by 6.2%.
Like-for-like (lfl) sales increased by 2.4% in the 16-week period to 20 July 2024, compared to the same period last year.
Marston’s – which gained the highest satisfaction score with its tenants in the PCA's Annual Tied Tenants Survey – said it has seen considerable uplift from Euro 2024 with lfl sales for the week of the semi-final and final matches rising by 8.0%. This has helped to reduce the impact of recent unseasonably wet weather and a particularly strong comparative period last year.
The group added it continues to see positive momentum across both food and drink occasions. Food sales have been particularly encouraging, with changes to its menu “proving increasingly popular with guests”.
Focus on debt reduction
On the future, the group said debt reduction remains a central focus for the management team and Marston’s said it intend to put financing in place that is better suited to the new level of leverage in due course.
The trading momentum seen year-to-date provides the board with confidence that, adjusting for the impact of CMBC (Carlsberg Marston’s Brewing Company), performance will be in line with market expectations.
Marston’s CEO Justin Platt said: “The continued positive trading momentum carried through from H1 has been encouraging. This is a testament to the focus and energy of our team, who are dedicated to giving our guests the very best pub experiences.
“The disposal of our 40% stake in CMBC marks a pivotal step for Marston’s, allowing us to become a pure play hospitality business. I look forward to delivering on the opportunities a focused pub business will provide.”
Brewing side sold for £206m
Marston’s added: “As announced on 8 July 2024, the group agreed to the sale of its 40% interest in CMBC to a subsidiary of Carlsberg for £206m in cash.
“This strategic and transformational transaction will enable Marston’s to become a focused, pure-play pub company and supports a significant reduction in the group’s net debt to under £1bn in a significantly accelerated time-frame. The transaction is expected to be accretive on adjusted earnings per share.
“On 11 July 2024, the Financial Conduct Authority confirmed the changes to the UK Listing Rules, one of which means that shareholder approval is no longer required for Class 1 transactions. These changes are due to come into effect on 29 July 2024.
“The board can therefore confirm its intention is to waive the requirement for the transaction to gain shareholder consent when the new UK Listing Rules come into force. Completion of the transaction is targeted for 31 July 2024.”
- Read what beer expert Pete Brown thinks about the sale.
