Marstons rockets back into profit on back of successful restructure
Marstons, the Wolverhampton-based pub operator and brewer recorded sales of £845.5 million, according to its end-of-year figures released today.
That represents revenue growth of 7% for the year to October 3, 2015.
Last year’s £59.2 million loss has been converted into a £31.3 million profit. Underlying profit before tax rose 10% to £91.5 million.
The company has been restructured over the last three years, reducing its number of pubs by around 20% to 1,600, and focusing instead on building over 100 pub-restaurants, with a greater emphasis on food sales.
As a result the average profit per pub across the estate is up 15% to £100k for the year, and up 40% since 2012, when the restructuring process began. Marston’s beer business is performing strongly too, with revenues up 27% to £169.1 million, driven in part by the acquisition of the Thwaites’ beer division during the year.
Beer volumes were up 15% and operating profit up 19% to £20.7 million. Ralph Findlay, chief executive of Marstons, said: “The three-year transformation of our pub portfolio towards an optimised estate is now largely complete.
We approach 2016 with our business successfully positioned at the forefront of industry trends with high-quality, well-invested pub assets which are fit for the future.
“We have great people and a growing portfolio of leading beer brands where our focus on premium and local provenance continues to serve us well.
“Looking forward, we remain on track to open at least 20 new-build pubs this year and have in place a carefully selected site pipeline in key regional locations for 2016 and beyond.”
Connor Campbell, senior market analyst at www.spreadex.com, said: “The drinks were on Marston’s this morning; the pub operator and brewer posted a 7% increase in full year revenue to £845.5 million alongside a 10% rise in underlying pre-tax profit to £91.5 million. Investors were more than keen to have a glass of what Marston’s was offering, causing the stock to jump 3% after the bell.”
The Marston’s portfolio includes Marston's Pedigree, Hobgoblin, Banks’s, Brakspear, Thwaites and Mansfield beers.