Strong World Cup Performance Drives Sales
Pub giant Marston's has toasted a successful trading period, citing a boost from the World Cup and higher margins from new pub formats. The company reported that like-for-like sales in its managed pubs rose by 3.5% in the 16 weeks to January 21, compared to the same period last year. The performance was driven by strong food sales and a surge in drink sales during World Cup matches.
New Formats Deliver Higher Margins
Marston's has been rolling out new pub formats, including its 'Inn Place' and 'Tavern' concepts, which have delivered higher margins. The company said that these formats now account for over 40% of its managed estate, and have helped to improve overall profitability. The new formats focus on premium food and drink offerings, and have been well received by customers.
According to Marston's, the new formats have also helped to drive higher average spend per customer, as well as increased customer satisfaction. The company is continuing to invest in its estate, with plans to open 10 new pubs this year, and to refurbish a number of existing sites.
Cost Pressures Offset by Efficiency Gains
Despite the positive trading update, Marston's acknowledged that cost pressures remain, particularly from rising energy costs and inflation. However, the company said that it has been able to offset these pressures through efficiency gains and cost-saving initiatives. Marston's also said that it is confident in its ability to manage costs going forward, and that it expects to deliver further margin improvement over the course of the year.
Chief Executive Andrew Andrea said: "We are pleased with the continued momentum in the business, with strong sales growth and margin improvement. Our new formats are performing well, and we are confident that our strategy of investing in our estate and focusing on premium offerings will continue to drive growth."
Outlook Positive Despite Economic Uncertainty
Looking ahead, Marston's said that it remains cautious about the economic outlook, but is confident in its ability to navigate the current environment. The company said that it expects to deliver full-year results in line with market expectations, and that it is well positioned for future growth.
Marston's shares rose by 2.5% following the trading update, as investors welcomed the strong performance. The company's update is the latest positive news from the pub sector, which has benefited from a strong Christmas trading period and the World Cup boost.
