Positive news from Marston’s today as they announced their preliminary results.
Total revenue and total like for like sales were up from 2015. Underlying operating profit of £172.7 million (2015: £165.4 million) was up 4.4% with profit growth in each of the trading segments and the company reports that like-for-like wet sales increased by 2.3%, outperforming the declining UK on-trade drinks market.
Marston’s continues to see growth in more premium products, with own-brewed premium ale volumes up 2%, premium lager up 17% and wine up 4%. There will be a continued focus on premium and craft beer to drive growth, energized branding of Marston’s beer brands and development of DE14 craft micro-brewery.
Local strategy and innovation creating growth in Brewing:
- Strong brand portfolio continues to outperform market with volumes up 13%
- Increased market share to 27% of premium bottled ale and 20% of premium cask ale markets
- Thwaites’ beer business fully integrated and achieving targets
Transformed pub estate generating growth opportunities:
- Average profit per pub up 8% in 2016, up around 50% since 2012
- 22 new pubs and bars completed this year, creating around 1,000 jobs
- Six lodges opened, taking estate to over 950 rooms
- Like-for-like sales up 2.3% in Destination and Premium, up 2.7% in Taverns
- Leased average profit per pub up 3%
Commenting, Ralph Findlay, CEO 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.
“We have a high quality pub and beer business which is displaying positive momentum and is consistently outperforming the market. We believe that, despite some continuing market headwinds, our expansion plans for new pub-restaurants, lodges and Revere bars will further enhance our ability to deliver attractive returns.”