UK's Marston's half-year profit rises on cost control; reiterates outlook (updated)
12/05/2026 07:51
Like-for-like sales fall 1.5% over 31 weeks
Underlying profit rises 7.9%
Cost pressures seen as manageable, annual outlook maintained
Recasts lede, adds shares, CEO and analyst comments, context and details throughout
May 12 (Reuters) - British pub operator Marston's MARS.L reported lower sales for the first half of its financial year and in the weeks since, hurt by soft demand and refurbishment-related closures, which overshadowed the company's confidence in its outlook and sent its shares down as much as 10.6%.
Marston's has been rolling out new pub formats in a push to become a pure‑play pub operator, while maintaining tight cost control, hoping that upgraded sites and refreshed menus will drive footfall in the summer and ahead of the soccer World Cup which kicks off in June.
The company, which owns more than 1,300 pubs across Britain, said like-for-like sales were down 1.5% over the 31 weeks of its year so far, following a stronger comparable period last year, which gained from holidays and warmer weather.
"While the soft LFL (like-for-like) growth in April could be seen as a negative read to the broader UK Pubs space, this should not come as a total surprise," JP Morgan analysts said.
Shares in Marston's were down about 7% at 0907 GMT, with peers JD Wetherspoon JDW.L and Mitchells & Butlers MAB.L down 1.2% and 1.9%, respectively.
COSTS MANAGEABLE, OUTLOOK MAINTAINED
Underlying pretax profit rose 7.9% to 20.5 million pounds ($27.8 million) for the 26 weeks ended March 28, while like-for-like sales dipped 0.5%.
Surging energy prices linked to the Iran war have added to pressures on Britain's hospitality sector, already struggling with weak consumer spending as households face higher prices for essentials from food to fuel, and companies look to cut costs.
The company still kept its annual outlook, as it said cost pressures were "manageable."
"Looking forward, we are very well positioned for the World Cup summer ahead and expect our pubs, especially our new Grandstand formats, to be in high demand," CEO Justin Platt said, referring to sports-focused pubs.
The company said electricity prices were hedged for fiscal 2026 and gas through fiscal 2027.
($1 = 0.7382 pounds)
(Reporting by Nithyashree R B in Bengaluru; Writing by Pushkala Aripaka Editing by Sonia Cheema and Keith Weir)
((NithyashreeRB@thomsonreuters.com))