Marston’s PLC (AIM:MARS) is hoping the World Cup and a restriction-free Christmas will bring a boost to business as it reported broadly flat sales for the 52 weeks to 1 October 2022.
Andrew Andrea, chief executive officer, said: “Looking forward, we are primed to maximise the trading opportunities provided by the forthcoming World Cup and first restriction-free Christmas in three years.”
The pub operator reported total sales fell 1% in the year to end-October compared to 2019 with first-half sales dented by the impact of trading restrictions in December and January as a result of Omicron and the impact on consumer sentiment in the following months.
Total retail sales in the group's managed and franchise pubs were up 2% against 2019 with drink sales continuing to outperform food sales.
Like-for-like sales were encouraging and continued to improve in the 10 weeks from 24 July to 1 October, up 3% when compared to 2019 and up 4% against last year, again predominantly driven by drink sales with food sales weaker due to the hot weather.
The group said the level of customer demand remains encouraging, notwithstanding the continued uncertainty around the cost of living and it continues to have “confidence that our pub strategy is beginning to deliver positive momentum”.
Marston’s said it remained comfortable with the guidance it has provided on energy costs for the year as a whole, although electricity costs in the last 10 weeks of full year 2022 were higher than originally forecast.
Inflationary pressures on the group's food and drink costs remain in line with previous guidance, it said.
Net borrowings at 1 October were £1.2bn, down £16mln year on year, and the group said 86% of the debt was hedged and therefore not at risk to interest rate movements.
Overall, Andrea said “Marston's is in good shape and well positioned to navigate the future."