REG - Marston's Plc - Trading update for the 42 weeks to 23 July 2022

Marston'sAnnouncement

27/07/2022 07:00

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RNS Number : 8195T  Marston's PLC  27 July 2022

 

 

                                     27
July 2022

 

MARSTON'S PLC

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

 

Trading update for the 42 weeks to 23 July 2022

 

 

Marston's PLC issues the following trading update for the 42 weeks to 23 July
2022.

 

 

Trading

 

All sales comparisons are compared to the same period in FY2019.

 

Total like-for-like sales for the 42-week period were down 2% vs FY2019.  As
previously reported, this reflects the impact of the reintroduction of trading
restrictions in December and January and corresponding impact on consumer
sentiment in H1.

 

Encouragingly, total retail sales in the Group's managed and franchise pubs
returned to FY2019 levels in the period. Drinks sales have continued to
outperform food sales, once again reinforcing the steadfast trading resilience
of Marston's predominantly community pub estate.

 

Like-for-like sales in the last 16 weeks to 23 July are 1% below FY2019, but
in the first 12 weeks of this period sales were slightly ahead of FY2019, and
over the last four weeks of the period despite drinks sales continuing to be
in growth, food sales have weakened principally due to the recent spell of
very hot weather.

 

The level of customer demand has been encouraging, notwithstanding the
uncertainty around the cost of living for consumers. Looking forward, the
Group remains well placed to deliver positive trading with its balanced estate
of predominantly community pubs, investment in outdoor trading areas and
staycation custom.

 

 

Energy Costs

 

As previously highlighted, the Group's electricity contract ended in March
2022.  The ongoing situation in Ukraine continues to impact energy prices,
and consequently electricity costs are expected to be c. £2.0m higher than
previously guided for H2 of this financial year.

 

With energy cost inflation likely to persist in the short term, Marston's has
taken the decision to fix the Group's electricity rates for Winter 2022,
covering the six-month period from September 2022 to March 2023 with an
incremental cost impact of c£3.0m in financial year 2023.  The Group's gas
price is also fixed until the end of March 2025 with no additional incremental
spend anticipated.

 

Notwithstanding the above, management continues to focus on making every
effort to mitigate cost inflation over the medium term through the various
opportunities open to it such as energy efficiency plans and future pricing
strategies.

 

Commenting, Andrew Andrea, Chief Executive Officer, said:

"Since COVID restrictions were lifted, we have been encouraged with the level
of sales as we have transitioned to operating on a 'business as usual' basis.
In spite of external economic headwinds, we have not seen any discernible
change to customer footfall to date and remain cautiously optimistic that we
will continue to see similar levels of customer demand across the summer where
we will benefit from our investments in outside space and staycations.

"We continue to focus on our strategic plans and remain on track with our debt
reduction strategy.  We are making considerable progress with the transition
away from our value food Two for One brand which will be complete by the end
of September.  We have completed 45 of these pub conversions to date and,
whilst still early days, initial indications are encouraging with positive
customer feedback and improving returns.  We remain confident that the
changes we are implementing now will deliver a higher quality business for the
Group over the medium to longer term."

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 2022
 2022 Preliminary results    29 November 2022

 

ENQUIRIES:

 Marston's PLC            Tel: 01902 329516                  Instinctif Partners         Tel: 020 7457 2010/2005
 Andrew Andrea,    Chief Executive Officer                   Justine Warren
 Hayleigh Lupino,   Chief Financial                          Matthew Smallwood
 Officer

 

 

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 1,481 pubs situated nationally,
comprising managed, franchised and leased pubs

·      Marston's employs around 12,000 people

 

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