Marston’s plc (LON:MARS) shares fizzled as the UK pub and brewing firm reported a slowdown in sales at its food-led premium outlets.
Like-for-like sales at its Destination & Premium pubs business rose 1.3% in the 42 weeks to 22 July and increased 0.6% in the most recent 12 weeks of the period. While the company said it was ahead of the market, it compares to a 1.6% gain in the 30 weeks to 29 April.
Warm weather boosted wet sales while food was flat and carvery was negative.
Reflecting the positive drinks sales, the Taverns division saw like-for-like sales in the 42-week period gain 1.9% with 2.4% growth in the last 12 weeks, accelerating from 1.7% at the interim results in May.
In its beer brewing arm, volumes increased 4%, supported by the acquisition of Charles Wells Brewing and Beer Business. Marston’s said its integration of that business “is proceeding as planned.”
"Our transformed pub estate continues to deliver positive like for like growth across all three divisions,” said chief executive Ralph Findlay.
“We benefit from an operating structure which spans food-led destination and wet-let community pubs, accommodation and brewing, maintaining a good balance within our brand portfolio and broad consumer appeal. “
Marston’s is on track to open 23 new pub-restaurants and bars in the current financial year in addition to eight lodges, he added.
Operating profits are slightly below last year, in line with expectations, while the guidance for costs in 2018 remains unchanged from its estimates provided at the interims.
“We remain confident of delivering further profitable progress for the full financial year,” Findlay said.
Shares fell 3.96% to 116.52p in morning trading.