Marston's sees Christmas sales rise but feels January snow impact
Pub company Marston's has reported a 1.2% like-for-like sales for the 16 weeks to 19 January 2013 in its managed pubs, despite the impact of snow for the final week of the period.
Like-for-like sales for the 15 week period to 12 January were 2.1% ahead of last year, including like-for-like food sales growth of 3.5% and like-for-like wet sales growth of 1%.
Like-for-like sales in the 7 weeks to 12 January were up 2.2%, against growth of 8% in the same period last year.
Marston's said trading over the festive period was strong including growth of 5.8% in the three-week trading period to 5 January and 10% on Christmas Day. Operating margins were slightly ahead of last year athe company said its programme of building new pub-restaurants was still on track.
In its tenanted and franchised pubs, profits for the 16-week period were estimated to be around 2% above last year, which it attributed to the success of its franchise model, now operating in around 550 pubs, and stability in the traditional tenanted estate.
Marston's own-brewed beer volumes were 5% above last year driven by significant growth in the off-trade.
Ralph Findlay, chief executive, said: "The results for the year to date are further evidence that our strategy is appropriate for the current environment and is generating consistent and encouraging results. We expect economic pressures to continue to constrain consumer confidence, and see no evidence that the Government recognises the damage being caused to pubs by high taxation and over-regulation. Nevertheless, we are confident of making further progress towards our objectives of sustainable growth, higher return on capital and reduced leverage."
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