Last checked at 
Sales in last six weeks up 7.5%
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HY loss 3.6 million stg vs 7.5 million stg
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Shares down as much as 7%
May 16 (Reuters) - Britons' thirst for premium lager drove strong sales at pub group Marston's during the Easter weekend and May bank holidays, as the outlook on costs and consumer confidence improve, but the loss-making company stopped short of resuming dividends on Tuesday.
Shares in the company, which were up in early trade, reversed course to fall as much as 7% by 1210 GMT, with analysts at JP Morgan saying that risks to the group remained elevated and balance sheet position potentially constraining the pub group's ability to restart dividends.
CEO Andrew Andrea, in an interview with Reuters, said Marston's would first focus on increasing its cash flow and reducing its net debt. He did not specify on when he expects payouts to resume.
The Wolverhampton-based pub group ended the six months to April 1 with 1.2 billion pounds in debt, down marginally from the last fiscal year.
"The absence of a cash return and growth suggests Marston’s will remain discounted at least until the current inflationary environment subsides and its structural impact is assessed," JPM added.
Marston's, which has more than 1,450 pubs and bars primarily based in local communities in Britain, reported an underlying loss before tax of 3.6 million pounds ($4.54 million) for the half year, compared with a loss of 7.5 million pounds last year.
Customers are shifting towards premium lagers such as San Miguel and Birra Moretti, which are out selling standard lagers Fosters and Carlsberg, the company said.
"The macro environment is becoming increasingly stable and recent evidence suggests that both the cost outlook, and consumer confidence, are steadily improving," Andrea said in a statement.
Food prices in Britain rose by a record amount over the past 12 months, but lower prices are on the horizon, according to the British Retail Consortium (BRC).
Last week, J D Wetherspoon forecast annual profit at the higher end of analyst expectations.
Marston's said current trading had been positive, with like-for-like sales in the last six weeks up 7.9% from last year. ($1 = 0.7923 pounds) (Reporting by Radhika Anilkumar in Bengaluru; Editing by Subhranshu Sahu, Jacqueline Wong and Angus MacSwan)
