Marston’s PLC on Wednesday said total retail sales in its franchise pubs returned to pre-pandemic levels, supported by robust drinks sales.
The London-based pub chain operator said total like-for-like sales in the 42 weeks to July 23 were down 2% compared to the same period in financial 2019.
The company blamed the reintroduction of trading restrictions in December and January and their hurtful effect on consumer sentiment for this decline.
Total retail sales in its managed and franchise pubs returned to pre-pandemic levels in the period, however. This was enabled by strong drink sales that outperformed food sales.
Marston’s reported that like-for-like sales in the last 16 weeks of the period were 1% below financial 2019 levels.
Sales in the first 12 weeks of the period were ‘slightly’ ahead of pre-virus levels. However, the company explained that while drink sales continued to be on the rise in the last four weeks of the period, food sales were weak, due to the ‘spell of very hot weather. ’
The pub chain operator noted that electricity costs will be £2.0 million higher than previously guided for the second half of its financial year, ending in October.
It explained that its electricity contract ended in March and that the current conflict in Ukraine is driving up energy prices.
As a result, Marston’s decided to fix its electricity rates for the winter, covering the six month period to March 2023 from September. This will have an incremental cost impact of £3.0 million in financial 2023.
‘Since Covid restrictions were lifted, we have been encouraged with the level of sales as we have transitioned to operating on a ’business as usual’ basis,’ Chief Executive Andrew Andrea commented.
‘In spite of external economic headwinds, we have not seen any discernible change to customer footfall to date and remain cautiously optimistic that we will continue to see similar levels of customer demand across the summer where we will benefit from our investments in outside space and staycations,’ he continued.
Shares were up 2.9% at 47.96 pence each on Wednesday morning in London.
Copyright 2022 Alliance News Limited. All Rights Reserved.
