Marston’s returns to profit in FY22

Marston’s has returned to profit in the year ended 1 October 2022, with pre-tax profits hitting £163.4m, up from a loss of £171.1m the prior year, as the group welcomed a return to normalised trading. 

It comes as like-for-like sales reached 99% of 2019 levels despite a disrupted Christmas trading period in light of Omicron. In the final 10 weeks of FY22, like-for-like sales were up by 3% vs. 2019 and 4% vs. 2021. 

In its latest results, the group said it has made continued progress with its debt reduction strategy. Net debt was reduced by £16m to £1.216bn, despite one-off £22m net outflows. 

In addition, its property value hit £2.1bn, an increase of £93.4m against 2021.

Looking ahead, the group said it was “well-positioned to meet challenging market conditions”, and has reported positive current trading, with like-for-like sales in the last 8 weeks up by 6.8% against last year.

More recently, the group has enjoyed a boost in trade thanks to the World Cup. For the two England World Cup games, like-for-like drink sales were up by around 50% against 2021.

Andrew Andrea, CEO said: “I am pleased to report a strong performance over the last 12 months evidenced by a doubling of revenue growth, a return to profit and steady progress with our debt reduction strategy. We have a clear and focused strategy which provides a strong platform for future growth, and it is encouraging to see the actions and initiatives which we have undertaken in 2022 beginning to deliver positive results. 

“Demand for our predominantly community-based pubs continues to be encouraging despite ongoing macro uncertainty and our estate is well-placed to benefit from changing patterns in consumer behaviour. We are managing cost inflation well and remain confident that our commitment to continue to reduce the group’s debt and return to sales back to £1 billion will drive NAV and shareholder value.” 

He added: “Current trading to the end of November has been positive with encouraging levels of Christmas bookings as we look forward to the first restriction-free festive period in three years. Additionally, the World Cup has benefited trading, delivering like for like drink sales of c.+50% for the home team games. 

“Whilst uncertainty remains, Marston’s remains well-financed and in great shape to weather the challenges ahead with the right formula, the right strategy and the right team to continue to make progress and deliver shareholder value.”