Marstons returns to profitability as sales hit pre-pandemic levels

Marstons has returned to profitability as its pub operating profit surged to £39.9m in the 26 weeks ending 2 April 2022 (H1 FY22), up from a loss of £57.2m in H1 FY21.

Pre-tax profits are also up from a loss of £105.5m last year to £25.6m, and total revenues are up year-on-year from £55.1m to £369.7m. 

All in all, total sales for the period are 97% of pre-pandemic levels, despite restrictions over the Christmas trading period and falling consumer sentiment due to the Omicron variant.

Marstons’ pubs in Wales and Scotland were more “significantly” impacted than those in England by the tighter restrictions that were enforced during the period.

Additionally, Marstons said that whilst consumer sentiment may come under some short-term pressure, it is not experiencing any material trading evidence of that currently. 

With 297 pubs under its portfolio, Marstons has injected additional investment into its pubs, marketing and people to ensure the medium to longer term prospects for the business continue to grow.

Andrew Andrea, CEO, said: “We are pleased that since restrictions lifted, trading has largely normalised, enabling us to return to profitable trading, as well as focusing – and making considerable progress – on our strategic growth plans towards achieving £1bn of sales. We remain on track to reduce the group’s debt by the end of FY2022.

“We continue to evolve our estate to maximise returns and will have transitioned away from the value food segment, our Two for One brand, by the end of September.”

He added: “Whilst mindful of the challenges which every hospitality business currently faces, trading remains stable and we look forward to an uninterrupted summer. We are navigating our way through cost increases, mitigating these as much as we can through cost efficiencies and pricing strategies.”