Marston’s toasts profits despite fears over Brexit
PREMIUM pubs and beer business Marston’s has raised a glass to rising profits despite looming concerns that Brexit could knock consumer confidence and raise costs for the sector.
The Two For One and Pitcher & Piano owner reported a seven per cent jump in underlying revenue to £906 million, and a seven per cent jump in underlying pre-tax profit to £98 million in the year to October 1.
Average profit per pub jumped eight per cent, as like-for-like sales in its premium and gastro-pub business rose 2.3 per cent, while like-for-like sales in local taverns – which drew higher drinks than foods sales – increased 2.7 per cent.
It helped offset the impact of disposals of a number of non-core pubs, the sale of which generated £45.9 million in cash. Marston’s – which brews beers including Hobgoblin, Wainwright and Lancaster Bomber – saw its share of the premium bottled ale market rise to 27 per cent, and to 20 per cent in the premium cask ale market.
The Wolverhampton-based company’s chief executive, Ralph Findlay, said: “We have delivered another year of good growth across the business, with the outstanding performance of our beer company particularly encouraging.
“Trading has been solid in the first few weeks of the new financial year and we have seen no discernible change to the trends experienced in 2016. The majority of our major product cost lines are contracted for 2017 and well into 2018.”