Marston’s reports £0.8m loss in H1 2024

British pub operator Marston’s has reported a £0.8m underlying loss before tax for the six-month period ending 30 March 2024.

However, the group’s revenues increased 5.2% to £428.1m (H1 FY2023: £407.0m), with good momentum across food and drink sales and like-for-like sales up 7.3%, outperforming the broader market.

The pub group also recorded a 22% increase in underlying pub operating profit to £52.7 million, with profit margin increasing from 10.6% to 12.3%.

Looking ahead, the group stated that as with prior years, the business will be impacted by the seasonality of trade which typically sees the majority of revenue, profit and cash flow generated in H2.

It also highlighted that it is “well-positioned” to continue to capitalise on consumer lifestyle changes with a predominantly freehold pub estate and community focus with limited city centre exposure.

Justin Platt, CEO said: “A positive H1, Marston’s has delivered strong like-for-like sales growth of +7.3% outperforming the market and achieving an impressive 22% uplift in pub operating profit. We have managed costs well and made further progress to reduce debt. This performance is testament to the dedication and hard work of our talented team, who constantly strive to delight our pub-loving guests.”

“The outlook for H2 is encouraging. With a number of ‘must not miss’ major sporting events, our massively upgraded pub gardens and much-loved food menus, we expect our pubs to be very popular this summer.”

Platt added: “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 to deliver consistent, reliable cash flows that will drive value for our shareholders.”