Marston’s, the UK pub operator with approximately 1,370 establishments, has released its latest trading update, revealing substantial revenue growth amid what is still a challenging market for pubs. The company noted a jump in sales during the Euros after England reached the final.
Marston’s share was 1.67% higher at the time of writing, as investors toasted the company’s resilient performance during the period.
Year-to-date figures show a 5.2% increase in like-for-like sales, while total retail sales across Marston’s managed and franchised pubs rose by 6.2%.
The 16-week period to 20 July 2024 saw a 2.4% uptick in like-for-like sales compared to the previous year, despite adverse weather conditions and strong prior-year comparatives.
The Euro 2024 football tournament provided a significant boost to Marston’s bottom line, with like-for-like sales surging 8% during the week of the semi-final and final matches. The company noted particular success in food sales, attributing this to recent menu changes that have resonated well with customers.
In a move that marks a strategic pivot, Marston’s announced on 8 July 2024 the sale of its 40% stake in Carlsberg Marston’s Limited (CMBC) to a Carlsberg subsidiary for £206 million in cash. This transaction is poised to transform Marston’s into a focused, pure-play pub company and is expected to reduce the Group’s net debt to below £1 billion, significantly ahead of previous timelines.
“The continued positive trading momentum carried through from H1 has been encouraging,” said Commenting, Justin Platt, CEO.
“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.”