Proactive Investors - Marston’s PLC (LON:MARS) reported healthy growth in sales and an improved cost outlook as it updated investors on trading.
The pub chain said in the 52 weeks to 30 September 2023 total retail sales in the group's managed and franchised pubs rose 11.3% on last year with like-for-like growth of 10.1%.
Both drink sales and food sales have been strong, demonstrating the resilience and appeal of the group's predominantly suburban pub estate.
Sales did soften towards the end of the year, reflecting the wet weather in July and August, with like-for-like sales in the 10 weeks to end September up 7.7%, compared to the year prior.
Drink sales in this period were behind food sales, principally due to the weather.
Marston’s said it has reduced head office headcount costs by approximately £5 million, the majority of which will benefit 2024 and subsequent years.
This cost reduction is expected to translate into higher pub operating profitability than was previously anticipated, the firm said.
Andrew Andrea, chief executive, commented: “An improving outlook in which cost headwinds are abating, together with the actions we have taken this year to drive further efficiencies, leaves us confident that Marston's remains well-placed to continue to outperform in the current macroeconomic environment, grow revenue and profitability, as well as deliver improved margin in the year ahead."
Marston’s is also targeting a debt reduction of £60-70 million in the 2024 financial year plus the sale of around £50 million of additional non-core properties.