Pub operator Marston’s has released its preliminary financial results for the 52 weeks ending on 28 September 2024. These results mark the company’s first annual report since divesting its 40% stake in the Carlsberg Marston’s Brewing Company (CMBC).
Operating a portfolio of 1,339 pubs across the UK, Marston’s reported a 3% increase in revenues, reaching £898.6 million. Like-for-like sales grew by 4.8%, reflecting strong operational performance and effective strategic execution.
The company’s underlying operating profit from its pub division rose by 17.9%, totalling £147.2 million (compared to £124.8 million in 2023). This improvement was driven by a combination of enhanced topline performance and operational efficiencies.
Additionally, Marston’s significantly reduced its net debt by £301.7 million, bringing it down to £883 million. This reduction was largely facilitated by proceeds from the sale of its CMBC stake and selective pub estate disposals.
Commenting on the results, Marston’s CEO Justin Platt stated:
“2024 has been a pivotal year for Marston’s as we transitioned into a focused hospitality business. The sale of our stake in CMBC has been transformative, allowing us to cut debt significantly, enhance our flexibility, and concentrate on our core strength: managing excellent local pubs.”
Platt also noted that the company’s renewed strategy is yielding positive outcomes. “We’ve achieved like-for-like sales growth that surpasses market averages, improved profit margins, and maintained robust cash flow. Early signs for the holiday season are promising, with Christmas bookings already exceeding last year’s levels.”
Julie Palmer, partner at Begbies Traynor, said:
“Marston’s has delivered a strong set of results for FY2024, with like-for-like sales growing by 4.8%, outperforming the broader pub sector. As we enter the Christmas party season, festive bookings are already looking promising, giving the Group valuable momentum as we head towards 2025”
“Today’s full year results reaffirm the Group’s resilience and strategic focus. Clearly, the decision to sell their 40% stake in Carlsberg Marston’s Brewing Company has been a key factor, reducing debt by £300m and allowing the business to focus on its pub strategy, including operational improvements that have driven a significant margin uplift.”
“While there are plenty of positives, the recent Autumn Budget has set the stage for both opportunities and challenges for the industry in the year ahead. The freeze on alcohol duties for draft products in pubs is a welcome relief, but rising costs remain a concern, especially the increase to employer national insurance contributions, and consumer confidence remains shaky. However, with a high-quality estate and a clear strategy, Marston’s should be well-positioned to tackle these headwinds.”
“With festive trading off to a strong start and a continued focus on debt reduction and operational efficiencies, the Group is entering 2025 with a solid foundation for sustainable long-term growth. It’s a tough environment for UK pub operators, but Marston’s has every reason to raise a glass to this year’s successes and hopefully look forward to more in the next.”
