Marston’s like-for-like sales drop 2%

Marston’s plc has revealed its like-for-like sales dropped 2% for the 42 weeks to 23 July FY22, compared to the same period in FY2019, due to the reintroduction of trading restrictions in December and January, and the impact on consumer sentiment in H1. However, total retail sales in the group’s managed and franchise pubs returned to FY19 levels in the period, and drinks sales have continued to outperform food sales. Meanwhile, like-for-like sales in the 16 weeks to 23 July are 1% below FY19, but in the first 12 weeks of this period sales were “slightly ahead” of FY19. Despite drinks sales continuing to be in growth, food sales have weakened over the last four weeks of the period, due to recent hot weather. Marston’s said the ongoing situation in Ukraine continues to impact energy prices, and electricity costs are expected to be c.£2m higher than previously guided for H2 of this financial year. Marston’s has decided 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£3m in financial year 2023. Looking ahead, the business said it continues to focus on mitigating cost inflation over the medium term, including through energy efficiency plans and future pricing strategies. Additionally, Marstons said it is well placed to deliver positive trading with its balanced estate of predominantly community pubs, investment in outdoor trading areas and staycation custom. Andrew Andrea, chief executive officer, said: “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.”