Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Marston’s Optimistic for Euros Summer as Profits Surge

by May 14, 2024
May 14, 2024
Marston’s Optimistic for Euros Summer as Profits Surge

Pub chain Marston’s has posted a strong first half of the financial year off the back of food and drink sales as it looks ahead to the bumper summer months filled with sport, including the Euros.

Operating 1,395 pubs across the UK, Marston’s announced this morning an increase in both revenue and profit for the 26 weeks up to 30 March. Underlying revenue rose from £407 million to £428.1 million, while profit increased from £43 million to £52.7 million. This performance outpaced market expectations.

The recent sunny weather provided a significant boost to pub sales as patrons flocked to beer gardens across the country. This positive turn is particularly welcomed by the hospitality sector, which has been grappling with a challenging cost-of-living crisis.

The increase in like-for-like sales, which grew by 7.3% during the period, contributed significantly to Marston’s success. Additionally, the pubs experienced a 22% rise in operating profit. The company also reported a reduction in debt and effective cost management, positioning itself favourably for the second half of the year. With major events such as the Euros and Olympics on the horizon, Marston’s expects to attract millions of Britons to its venues.

Despite the positive trends, Marston’s reported a statutory loss before tax of £43.5 million, up from £38.1 million in the same period last year. This was attributed to two non-cash items: a £25.8 million increase in liabilities from interest rate swaps and a £16 million charge related to the impairment of CMBC’s ale brand and onerous contract provision.

Chief Executive Justin Platt commented: “A positive first half, Marston’s has delivered strong like-for-like sales growth of 7.3 per cent, outperforming the market and achieving an impressive 22 per cent uplift in pub operating profit. We have managed costs well and made further progress to reduce debt.”

Platt expressed optimism for the second half of the year, highlighting the potential of Marston’s upgraded pub gardens and popular food menus to attract guests during major sporting events. “Reflecting on my first few months with Marston’s, I am very excited by the potential that lies ahead. The UK pub market offers significant value-driving opportunities for those who can engage and deliver for their guests. With our high-quality estate and guest-obsessed team, we are well placed to capitalise and deliver consistent, reliable cashflows that will drive value for our shareholders.”

Looking forward, Marston’s aims to build on its positive trading momentum, leveraging the seasonality of its trade, which typically sees the majority of revenue, profit, and cashflow generated in the second half of the year. The company plans to drive efficiencies, targeting at least £8 million in cost savings, primarily from reduced energy and labour costs.

Marston’s also addressed recent job cuts, stating it had initiated an operational programme to streamline the business and enhance efficiencies. The one-off headcount related costs, which amounted to £0.5 million in the current period and £2.9 million for the 26 weeks ended 30 September 2023, are expected to be short-term and non-recurring. As of 30 March 2024, £3.4 million had been incurred as part of the reorganisation, restructuring, and relocation costs.

With a promising outlook for the summer and strategic plans to drive efficiencies, Marston’s is well-positioned to capitalise on the anticipated increase in pub-goers during the major sporting events.

Read more:
Marston’s Optimistic for Euros Summer as Profits Surge

0
FacebookTwitterGoogle +Pinterest
previous post
MBA Programs in Brazil
next post
How to successfully relaunch a web project – Noxwin.com

You may also like

Anthony Gallo: Connecting Businesses and Realtors to the...

April 1, 2025

Amazon-iRobot deal scrapped after EU competition challenge

January 31, 2024

Beckham backed vehicle electrification company Lunaz makes substantial...

April 5, 2024

An In Depth Conversation with Andrew Draayer On Balancing...

April 2, 2025

Brexit Pubs Guarantee announced in Spring Budget comes...

August 1, 2023

Housing crisis leaves 21 hopeful tenants battling for...

September 13, 2024

Global SMEs show resilience and optimism as Alibaba.com...

September 11, 2024

How to start an interior design business

August 27, 2022

WeWork raises ‘substantial doubt’ over future

August 9, 2023

UK’s budding entrepreneurs stifled by cost of living...

December 21, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025
    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,564)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved