Express & Star

Record sales year for Marston's with World Cup boost

Breweries and pubs group Marstons enjoyed record sales in its latest financial year but statutory pre-tax profits were down by 46 per cent to £54.3 million as its was hit by estate revaluation.

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Marston's chief executive Ralph Findlay

The Wolverhampton-based business saw revenue rise by 13 per cent in the year to September 29 to £1.14 billion.

Underlying profit before tax was ahead four per cent at £104m with growth in all trading segments.

Marston's saw a fifth consecutive year of like-for-like pub sales growth of 0.6 per cent as drink-led pubs outperformed food-led pubs

The group opened 14 pub-restaurants and seven lodges during the year.

Average profit per pub was up two per cent and since 2012 has risen by 55 per cent.

Marston's, which employs around 14,300, reported strong growth in brewing with sales of its own and licensed brands exceeding 330 million pints.

The total volume growth of 47 per cent reflected the acquisition of the Charles Wells beer business and the impact of England's successful run in the football World Cup and the sunny summer weather.

Chief executive Ralph Findlay said: “Marston’s has performed well in a difficult market. Our balanced business model has stood us in good stead, delivering record sales and underlying profits with revenue exceeding £1.1 billion for the first time. Our taverns wet-led community pubs and market-leading brewing business had an outstanding year, more than offsetting the effects of weather volatility and the World Cup on our food- led pubs.

"It's been a very unusual year, starting with the Beast from the East in the first half which cost us £3 million. Fortunately that was followed by a hot summer and the World Cup."

The football tournament provided an excellent draw for Marston's traditional boozers – known in the trade as 'wet-led pubs' because they primarily sell beer rather than food – and Mr Findlay said they serviced 57 per cent more customers when England matches were on.

The result was record takings, soaring past the billion pound mark for the first time. The company has also pleased City analysts with its plans to steadily reduce its £1.4 billion debt pile in the face of wider economic and political uncertainty.

Mr Findlay added: “Macro-economic and political uncertainty is reflected in our capital plans this year. However, the outlook for good pubs and brewing remains attractive and Marston’s is well placed to leverage the opportunity this presents with our high quality, well invested estate, leading brands and great people. We expect to make positive progress once again in the current financial year.”

Another 10 pub restaurants have been opened this year and five of Marston's Lodge hotels. The company has also spent £8 million on a canning line at its Burton brewery site and is opening a major new distribution depot in Dartford to give it greater access to pubs in the South.

Marston's now supplies one in four UK pubs. Its main distribution base is at Wolverhampton, next to its Banks's Brewery and headquarters in Chapel Ash – a site that employs around 1,000 people in all.

Marston’s now has an estate of 1,545 pubs across the country and 1,551 hotel bedrooms on the group’s pub and lodge accommodation portfolio.

It is the UK’s leading brewer of premium cask and packaged ales, including Marston’s Pedigree, Wainwright, and Hobgoblin.

Trading has been solid and in line with expectations for the first seven weeks of the current financial year, with growth in both pub like-for-like sales and own and licensed beer volumes.

Marston's, which includes Banks's, Wychwood, Jennings and Ringwood breweries, now has a 14 per cent share of the total ale market, 20 per cent of the premium ale market in the on-trade and 27 per cent of the premium botted ale market.

It also now exports 19 brands into 61 countries with export volumes now accounting for nine per cent of external ale volume, almost double the level from recent years.