Brewing company Marston’s (LON:MARS) saw shares sink over 4 percent on Wednesday morning, after hot weather led to weak demand for its pub meals.
Like-for-like sales in tits food division rose by just 1.3 percent for the 42 weeks to July 22, almost half the 2.5p percent rate recorded in the same period last year.
Marston’s brewing section fared better, with own-brewed beer volumes up around 4 percent on the year before, reflecting the “continued good performance of our underlying business and the benefits of the acquisition of Charles Wells Brewing and Beer Business.”
The company confirmed that it remained on track to meet growth targets for 23 new pub-restaurants and bars in the current financial year in addition to eight lodges.
Commenting on the results, Ralph Findlay, Chief Executive Officer, said:
“We remain encouraged by our continued market outperformance and focused on delivering sustainable growth and maximising return on capital in an evolving market place.
“Our transformed pub estate continues to deliver positive like for like growth across all three divisions. We benefit from an operating structure which spans food-led destination and wet-let community pubs, accommodation and brewing, maintaining a good balance within our brand portfolio and broad consumer appeal.
“The Charles Wells brewing and beer business is bedding in well, further underpinning our leadership in the UK ale market. We are on track to complete our new-build and lodge expansion plans. We remain confident of delivering further profitable progress for the full financial year.”
Shares in Marston’s are currently trading down 3.23 percent at 117.40 (1127GMT).
