Marston’s PLC (LSE:MARS) has swung back into a profit and said it is “well positioned to meet challenging market conditions.”
The pub chain reported a pre-tax profit for the year of £27.7mln compared to a loss of £101.3mln in 2021.
Total revenue for the pub chain was up to £799.6mln, nearly double that of 2021, where it reported sales of £407.1mln. Full-year like-for-like sales were 99% of 2019, it said, despite a disrupted Christmas trading period.
“We have a clear and focused strategy which provides a strong platform for future growth, and it is encouraging to see the actions and initiatives which we have undertaken in 2022 beginning to deliver positive results,” said Marston's chief executive Andrew Andrea in the results statement.
Looking forward, Marston’s believes it is well positioned to meet challenging market conditions, with sales in the last eight weeks up 6.8% compared to last year.
Marston’s said it has welcomed the first winter World Cup, with like-for-like sales up roughly 50% for the first two England games and it looks forward to a restriction-free Christmas.
“Current trading to the end of November has been positive with encouraging levels of Christmas bookings as we look forward to the first restriction-free festive period in three years,” noted Andrea.
Predominately operating community-based pubs, where demand continues to be encouraging, means less exposure to city centres, and Marston's said its “estate is well-placed to benefit from changing patterns in consumer behaviour.”
Additionally, Marston’s believes it is managing inflation by offsetting costs through efficiencies and pricing strategies
The company said it continues to make progress with its debt reduction strategy, which it reduced by £16mln to £1.2bn. “The vast majority of our borrowing is long-dated and asset-backed. 90% of our borrowings are hedged and therefore not at risk of any changes in interest rate movements that may occur during the year," it noted.