Drink demand keeps Marston’s sales afloat in FY22
Like-for-like sales were down 1% against FY19 however, reflecting the impact of trading restrictions last December and January as a result of Omicron
Marston’s has announced that total retail sales for the year to 1 October were up by 2% against FY19, predominantly driven by drink sales which continued to outperform food sales in the period.
Like-for-like sales were down 1% against FY19 however, reflecting the impact of trading restrictions last December and January as a result of Omicron and the corresponding impact on consumer sentiment in H1.
Nonetheless, in the 10 weeks from 24 July to 1 October, like-for-like sales were “encouraging” and reportedly continued to improve.
It added that the level of customer demand “remains encouraging”, notwithstanding the continued uncertainty around the cost of living crisis.
Elsewhere, it noted that electricity costs in the last 10 weeks of FY22 have been higher than originally expected due the recent volatile market for energy. Its electricity is reportedly hedged for H1 of FY23, covering the six-month period from October 2022 to March 2023.
It welcomed the recent announcement by the Government concerning the energy price cap which it said was “helpful” and “further protects our H1 energy spend”.
Nonetheless, inflationary pressures on the group’s food and drink costs remain in line with previous guidance.
Andrew Andrea, CEO, said: “This is a good performance, with the trading momentum we experienced in the Summer continuing. Marston’s has a long-term capital structure which is well suited to the current market environment and we remain committed to our debt reduction strategy with which we continue to make progress. We are managing cost inflation well with food, drink and energy costs covered for the immediate future.
“Whilst we are not complacent and can’t predict what the future will hold, what is clear is that people want – and are continuing – to visit our predominantly community pubs. The level of customer demand we are experiencing is encouraging which underpins our confidence that our strategy is working and we are making positive progress in that regard.”
He added: “Looking forward, we are primed to maximise the trading opportunities provided by the forthcoming World Cup and first restriction-free Christmas in three years. Marston’s is in good shape and well positioned to navigate the future.”
