Snowy weather has struck pub operator Marston’s (MARS) and wiped off £1m in profit in the 16 weeks to 20 January.
In early December and between Christmas and New Year, icy weather deterred customers from popping out for a pint and traditional pub food. Like-for-like sales declined by 0.9% due to the unexpected disruption to trading.
Excluding the impact of the two snow-affected weeks, revenue increased 1.1%.
Other divisions enjoyed stronger trading with like-for-like sales in taverns rising 2.6% thanks to an improved drinks range and franchise-style deals.
Marston’s Beer Company is also a bright spot with own-brewed volumes up 33%. The performance was supported by the acquisition of Charles Wells Brewing Business, distribution gains and a strong brand portfolio.
DECELERATION 'EXPECTED'
Shares in the pub operator are down 1.6% at 112.8p as investors are apparently not that surprised by the subdued trading.
Stockbroker Numis notes the Peach Tracker for December fell 1.6% in December in the Pub Restaurants category. It marked a significant drop from 1.5% growth in November.
JP Morgan Cazenove’s Alexander Mees says Marston’s is more susceptible to bad weather due to its focus on rural locations and the Midlands and the North.
Underlying sales growth is steady at approximately 1%, up from JP Morgan’s 0.9% forecast.
Mees cut pre-tax profit estimates by 1% to £110.7m for the year to 30 September 2018, but remain confident Marston's can deliver more than 10% profit growth this year.
