REG - Marston's Plc - Trading update for the 42 weeks to 22 July 2023

Marston'sAnnouncement

26/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230726:nRSZ1693Ha&default-theme=true

RNS Number : 1693H  Marston's PLC  26 July 2023

           26 July 2023

 

MARSTON'S PLC

("Marston's" or "the Group")

 

Trading update for the 42 weeks to 22 July 2023

 

Marston's PLC issues the following trading update for the 42 weeks to 22 July
2023.

Trading

All sales comparisons are compared to the same period in FY2022.

Like-for-like sales for the 42-week period were +10.7% vs FY2022. Both drink
sales and food sales have been strong, demonstrating the steadfast trading
resilience of our predominantly community pub estate.

Like-for-like sales in the 16 weeks to 22 July 2023 were +10.9% vs FY2022,
reflecting the warmer weather in June, which enabled us to maximise the return
on investment in our outdoor trading areas undertaken ahead of the summer
months.

Total retail sales in the Group's managed and franchised pubs for the 42-week
period were +12.0% on last year.

The level of customer demand continues to be good, demonstrating that the
positive experiences our guests have in our pubs is important and continues to
drive demand.

As we set out in the Interim Results, we trialled rolling out the
franchise-style model in 13 of our food-led managed pubs to complement the 717
wet-led pubs currently operated under this model.   We are very pleased with
the result of the trial, with sales growth exceeding our broader food
business. As a consequence, we expect to grow the number of food-led
partnerships to over 50 pubs in FY2024.

Outlook

Cash and debt

Dividends from CMBC are expected to be £11.0 million in H2 of FY2023.

Reducing net debt, excluding IFRS 16 lease liabilities, to below £1 billion
continues to be a key focus of the Group's financial strategy and our progress
is in line with expectations. We anticipate that net debt, excluding IFRS 16
lease liabilities, will have reduced by £50-£60 million at the end of
FY2023. We expect the same level of debt reduction in FY2024.

Costs

As a consequence of pursuing the operational strategy of simplifying the
business and driving efficiencies, together with a more positive outlook on
input costs in FY2024, we anticipate being well-placed to navigate any
consumer headwinds. We believe pubs remain an affordable treat and have
consistently proved resilient to pressures on the consumer in previous
economic downturns.

Looking forward, the Group will continue to invest in the future growth of the
business and remains well-positioned to deliver positive trading from its
community pubs across the UK.

Andrew Andrea, CEO, commented:

"Marston's has delivered another strong trading performance, validating the
strategy we are implementing and demonstrating the appeal of our pubs.  We
are making good progress and are beginning to see the benefits of the actions
we have taken in H1, simplifying our trading formats and repositioning our pub
portfolio, as well as the investments we have made in our pub gardens and
outside trading areas.

"In addition, we are encouraged by the success of the trial extending the
partnership model into our food-led pubs.  The trial has been positive and we
will extend this model to over 50 food-led pubs in FY2024.  Marston's
pioneered the operator managed agreement in 2009, which now operates in over
700 wet-led pubs, and we are pleased to lead the evolution of this format and
are excited about its future growth potential for our business.

"We remain focused on delivering on our debt reduction strategy and continue
to make good progress in that regard.  Whilst macro-economic challenges
persist for the time being, we remain encouraged by the Group's trading
resilience and that the pub remains an affordable treat for our guests.  An
improving cost outlook, together with the actions we are taking to maximise
efficiencies, leaves Marston's well-placed to navigate through ongoing
economic headwinds".

 

Forthcoming Events

Please find below the forthcoming reporting dates for Marston's, which are
also available on the investor calendar on our website -
www.marstonspubs.co.uk/investors (http://www.marstonspubs.co.uk/investors)

 

 Year-end trading statement                                                 11 October 2023
 2023 Preliminary results                                                   5 December 2023

ENQUIRIES:

 Marston's PLC                                           Tel: 01902 329516
 Andrew Andrea,  Chief Executive Officer
 Hayleigh Lupino, Chief Financial Officer

 Instinctif Partners                                     Tel: 020 7457 2020
 Justine Warren
 Matthew Smallwood

 Joe Quinlan

 

NOTES TO EDITORS

·      Marston's is a leading pub operator with a 40% holding in
Carlsberg Marston's Brewing Company

·      It operates an estate of 1,433 pubs situated nationally,
comprising managed, franchised and leased pubs

·      Marston's employs around 11,000 people

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUVRBROBUBUAR