Marston's PLC Trading update for the 16 weeks to 20 January 2018 (5903C)
January 23 2018 - 2:00AM
UK Regulatory
TIDMMARS
RNS Number : 5903C
Marston's PLC
23 January 2018
23 January 2018
MARSTON'S PLC
Trading update for the 16 week period to 20 January 2018
Marston's PLC issues the following trading update for the 16
week period to 20 January 2018 ahead of the Annual General Meeting
to be held at noon today.
Trading summary: We continued to make progress in the period
with growth in both sales and underlying earnings, helped by the
acquisition of the Charles Wells Brewing Business in May 2017 and
the contribution from the 19 new-build pubs in financial year
2017.
Snow and icy weather towards the end of the period, both in
early December and between Christmas and New Year, caused some
unavoidable disruption to the business.
Destination and Premium: Total sales for the period are up 4.9%
reflecting the contribution from the estate expansion in 2017.
Like-for-like sales in the period, excluding the impact of the two
snow-affected weeks, are up 1.1%. The weather impact on like-for
like sales was around 2%, and on an unadjusted basis like-for-like
sales were down 0.9% in the period. We estimate the profit impact
of this to be GBP1 million.
We continue to maintain a disciplined approach to operating
margins without recourse to the significant discounting which has
remained prevalent in the sector. Margins remain in line with
expectations and are slightly below last year reflecting cost
increases as previously guided. There are no changes to the cost
guidance previously provided in November 2017.
Taverns: Like-for-like sales for the period are up 2.6%
benefiting from the performance of franchise-style agreements and
an improved drinks range.
Leased: Our leased estate has performed well, with profit growth
in the period estimated to be 2%.
Brewing: Marston's Beer Company has achieved good growth in the
period to date, with own-brewed volumes up 33%. In addition to the
acquisition of Charles Wells Brewing Business ("CWBB") we are
benefiting from distribution gains achieved in 2017 and a stronger
brand portfolio well represented in the premium ale, craft beer and
'world beer' segments of the market. We remain on-track to achieve
the targeted synergies from the acquisition.
New-build developments: We remain on target to open 15 pub
restaurants and bars and six lodges this year. We have opened three
pub-restaurants and two lodges in the year to date, including a 104
bed lodge in Ebbsfleet.
Ralph Findlay, Chief Executive Officer, commented: "We are
pleased with our progress, which included record total retail sales
in our pubs of GBP4 million on Christmas Day - 5.4% higher than
last year. We continue to achieve growth against tough market
conditions and are benefiting from investment in both pubs and
brewing. We look forward to continuing to provide our customers
with a great pub experience and excellent service, as well as
delivering value for shareholders, over the year ahead."
ENQUIRIES:
Marston's PLC Tel: 01902 329516
Ralph Findlay, Chief Executive Officer
Andrew Andrea, Chief Financial and
Corporate Development Officer
Instinctif Partners Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
NOTES TO EDITORS
-- Marston's is a leading pub operator and independent brewer.
-- It has an estate of 1,568 pubs situated nationally, comprising managed, franchised and leased pubs.
-- It is the UK's leading brewer of premium cask and packaged ales, including Marston's Pedigree, Wainwright,
Lancaster Bomber and Hobgoblin. The beer portfolio also includes Banks's, Jennings, Wychwood, Ringwood,
Brakspear and Mansfield beers. Following the acquisition of CWBB, Marston's has added Bombardier, Courage and
McEwan's to its brand portfolio most recently, as well as a range of licensed brands including Young's, Founders
and Estrella Damm.
-- Marston's employs around 14,500 people.
This information is provided by RNS
The company news service from the London Stock Exchange
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