Marston’s PLC (LSE:MARS) reported 20% growth in profits in the first half of its financial year as the pub group looked to balance cost efficiency and investment in its estate.
Interim results for the 26 weeks to 29 March 2025 showed revenue remained stable at £427.4 million, down 0.2% on this time year despite the impact of £50 million of disposals in the previous period.
Like-for-like sales, however, increased 1.3%, or 2.9% for the 31 weeks to 3 May 2025. There has also been growth of 10.5% in the first five weeks of the second half.
Underlying pub operating profit rose by 20.1% to £63.3 million, supported by improved operational efficiency and cost savings. Reported profit before tax was £19 million, reversing a £0.2 million loss last time.
EBITDA margin expanded by 250 basis points, driven by "data and technology-led improvements in labour deployment and procurement efficiency".
Net debt was cut to £881 million from £1.16 billion a year earlier, helped by the disposal of brewing joint venture Carlsberg Marston's for £206 million cash last July.
"The first half has been a period of significant momentum for Marston's, with the execution of a market leading pub operating model, investment in our differentiated pub formats and progress in our digital transformation driving strong margin and profit growth," said CEO Justin Platt.
Looking ahead, he said the group was on track to achieve its full-year financial targets.