Marston's trade 'resilient' in tough conditions

29th July 2008, 10:32am

Marston's Pubs has reported positive sales for the 26 weeks ending 29th March 2008 and highlighted how food sales continue to drive the business forward.

In a statement the company said: "Our performance has continued to be resilient although trading conditions have been difficult for the industry. Food sales have continued to increase, but with reduced sales from drinks and gaming machines."

Group turnover was approximately 2% ahead of last year for the 43 week period.

In Marston's Inns & Taverns, the managed pub division, like-for-like sales for the 43 week period were 0.6% below last year against strong comparatives (2007: 4.3% increase).

Sales in April 2008 were relatively weaker with the 13 weeks to 26 July 2008 like-for like sales reported as 0.5% ahead of last year.

"We are providing more support to retailers where appropriate, and anticipate that this will cost up to £2million in the current financial year. We believe that our consistent policy of achieving a sustainable rent for each pub is contributing to our resilient performance", the company said.

Ralph Findlay, Chief Executive, commented: "Although the market is difficult, and we do not expect any improvement in the economy in the short term, we are still seeing growth in eating out in Marston's pubs despite the squeeze on discretionary expenditure and weaker confidence. We are also experiencing volume growth in the excellent range of Marston's premium ales. Cost inflation remains a significant challenge, but we are controlling our costs well and are taking appropriate actions to offset some of the increases in the costs of brewing raw materials, food supplies and utilities. We are relatively well positioned as a result of sustained investment in our food offers, the improvements in our range of beers and premium brands, and our freehold pub estate."

Related Articles:

• 15 Oct 2009 - Marston's offers free kids meals to celebrate new menu
• 01 Oct 2009 - Travelodge and Marston's join forces
• 05 Aug 2009 - Marston's set to expand despite recession
• 26 May 2009 - Food and beer prove resilient for Marston's

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