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(Alliance News) - Pub chain Marston's PLC on Wednesday said retail sales rose 11% in its recent financial year, after a wet mid-summer in the UK gave way to a fine September.
Wolverhampton, England-based Marston's operates 1,440 pubs.
Like-for-like sales in the year, which ended September 30, were up 10%. In the wake of the Covid pandemic, Marston's said it benefits from having a predominantly suburban pub estate.
Like-for-like sales were up 7.7% in the 10 weeks from July 23 to September 30, with drink sales trailing food sales due to wet weather in July and August. However, in the last five weeks of that period, like-for-like sales were up 12%, with both food and drink sales showing strong growth, Marston's said.
On the cost side, Marston's said it has fixed its energy costs for financial 2024, as well as a "significant proportion" of its food and drink costs. The company also has reduced head office staff costs by GBP5 million, the benefit of which mostly will be in financial 2024 and beyond.
Marston's is targeting at least a 200 basis points improvement in profit margin over the next two to three years, with 50 points of this coming from the cost cuts it already has made.
Net debt on September 30 was GBP1.19 billion, down GBP31 million on a year before. The company aims to cut debt by GBP60 million to GBP70 million in financial 2023.
"Two years ago, we set out our vision and strategy with a clear objective to create a simplified, high quality predominately suburban pub business, with minimal exposure to city centres where demand is more volatile," Chief Executive Officer Andrew Andrea said, adding: "The benefits of this strategy are now coming through."
Marston's will release its full financial 2023 results on December 5.
Marston's shares were down 1.9% to 28.29 pence in London on Wednesday morning.
By Tom Waite, Alliance News editor
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