In its latest trading update, the business reported like-for-like sales had risen 4.8% for the 52 weeks ended 28 September 2024 with revenue having increased by 3%, from £872.3m in 2023 to £898.6m.
The firm also detailed underlying pub profit was up 17.9% to £147.2m (2023: £1214.8m) alongside a 21.4% rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA), compared with 19.5% in 2023.
Moreover, the update revealed underlying profit before tax stood at £42.1m, up from £25.6m last year, representing growth of 64.5%, and statutory profit before tax of £14.4m.
Like-for-like sales in the first six weeks of the new financial year grew by 3.9%, which Marston’s said marked a “strong start to the year, demonstrating continued growth ahead of the market”.
Robust cash flow
In addition, the update revealed Christmas bookings across Marston’s 1,339 strong estate were tracking ahead of last year, despite the “additional pressure” on costs announced in the autumn Budget.
Regarding the results. Marston’s CEO Justin Platt said: “We’ve delivered like-for-like sales growth ahead of the market, significant margin improvements and robust cash flow, while current trading is encouraging with Christmas bookings already ahead of last year.
“Community-based pubs like ours play an essential role in UK society, backed by our hardworking local teams who give our guests great experiences every single day.”
The update added Marston’s sales of its 40% stake in CMBC in July had been a “defining moment” for the group, resulting in net proceeds of £202.6m and supporting a reduction in net debt of more than £300m in FY24.
In addition, the group said it was now a “pure-play hospitality business” with a focus on “not just owning and running pubs but to run them really well”.
Superb foundation
Marston’s detailed “changing market dynamics” had been “instrumental” in laying the foundations for its new strategy, with a focus on building a “high-margin business, based on differentiated formats and a brand portfolio that is naturally balanced”.
The new strategy includes targeted investment to create five differentiated pub formats, digital transformation and expansion of managed & partnership models.
Platt added: “2024 has been a defining year for Marston’s as we began an exciting new chapter as a leading pure-play hospitality business.
“The sale of our stake in CMBC has been transformational, enabling us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs.
“All this gives Marston’s a superb foundation for sustainable, long term growth, and fills us with confidence for 2025 and beyond.”
