Marston's, a popular pub chain in the UK, has celebrated a prosperous first half of the financial year with an increase in both revenue and profit. The company's success is linked to its robust food and drink sales, which were further propelled by patrons flocking to beer gardens across the country due to the recent sunny weather. This positive trajectory is a welcome development for the hospitality sector, which has been facing challenges amidst a cost-of-living crisis.
During the 26-week period leading up to 30 March, Marston's experienced a notable rise in underlying revenue, climbing from £407 million to £428.1 million, along with an increase in profit from £43 million to £52.7 million. These results exceeded market expectations and were driven by a 7.3% growth in like-for-like sales and a 22% increase in operating profit for the pubs. Additionally, effective cost management and reduced debt have positioned Marston's favorably for the latter part of the year, where major events such as the Euros and Olympics are expected to attract millions of Britons to its venues.
Despite the positive performance, Marston's reported a statutory loss before tax of £43.5 million, attributing it to non-cash items like a rise in liabilities from interest rate swaps and charges related to the impairment of an ale brand and onerous contract provision. Chief Executive Justin Platt expressed satisfaction with the company's achievements, highlighting the strong sales growth, outperformance of the market, and successful cost management that have contributed to Marston's success. Looking ahead, the company aims to capitalize on its upgraded pub gardens and popular food menus during major sporting events, leveraging its high-quality estate and dedicated team to drive value for shareholders.