Marston’s gets a lift from drive to up food sales
PUB and brewing group Marston’s reported a rise in profits yesterday, which it attributed to its strategy of increasing food sales and targeting family consumers searching for value in a struggling economy.
Marston’s underlying profit before tax rose nearly 15 per cent to £33.5m in the half-year ending 31 March.
The company credited its “F-Plan” – a strategy focusing on food, families, females, and 40-50 somethings – for spurring its growth this year, including an 11 per cent increase in the number of main meals served and an eight per cent increase in children’s meals.
“Importantly, the majority of the growth in food sales has been achieved through higher sales volume rather than through price increases,” the company said.
On current trading, the company said like-for-like sales in the 32 weeks to 12 May were up 2.4 per cent in the company’s managed house division.
Managed pubs are run directly by the company and have greater pricing freedom.
It estimated that profit at its tenanted and franchised businesses rose around three per cent in the same period.
Revenue was £342m, up from £318m in 2011.
The company, which employs 12,000 people and operates around 2,150 pubs across England and Wales, raised its interim dividend to 2.2p per share, up five per cent from last year.
Shares in Marston’s have risen about four per cent since the start of the year, compared to an approximately 12 per cent rise in the FTSE Mid 250 Index.
Yesterday the shares closed 2.75 per cent higher at 97p, valuing the company at around £539m.