Marston's set to reveal sales increase, boosted by England's Euro final run

The company, which operates around 1,370 pubs across the UK, is expected to post a trading update on Wednesday, October 9, for its full year to September

Pub group Marston’s is set to report robust sales for the past year despite a damp summer.

The company, which operates around 1,370 pubs across the UK, will present a trading update to shareholders on Wednesday, October 9. It's anticipated to reveal an increase in like-for-like sales as customers continued to frequent its venues despite financial pressures.

Analysts at Panmure Liberum predict that Marston’s will record sales of £900m, with a like-for-like growth of 5%, for the year ending in September. In its latest update, the firm reported a 5.2% growth in like-for-like sales over the 42 weeks leading up to July 20, while total sales from its managed and franchised pubs rose by 6.2%.

Although wet weather slightly slowed sales growth over the last four months, this was significantly offset by a boost during the Euro 2024 football tournament. England lost in the final to Spain. These results come during a transition period for Marston’s as it shifts its focus entirely to pub operations after fully exiting brewing operations.

In 2020, Marston’s agreed to sell part of its brewing business – which produces Hobgoblin and Shipyard – to Carlsberg, forming a joint venture with the Danish brewer. In July this year, it sold its remaining stake in the cask ale brewer for approximately £206 million. Marston’s stated that this divestment will allow it to concentrate solely on running its pub chain and reduce its debt levels.

Analysts have lowered their profit predictions for the current year following a deal, with Peel Hunt forecasting a pre-tax profit of £41.7m for the year. This comes after a statutory pre-tax loss of £20.7m last year.

Anna Barnfather from Panmure Liberum stated that the company will be bolstered by recent efficiency measures and cost reductions, which should have improved its profit margins. Marston’s has also been working to improve its portfolio, recently selling 18 pubs from its estate to private equity competitor Admiral Taverns.

This follows a sale of 19 pubs to Red Oak Taverns in May. Last year, the group announced a strategy to raise around £50m through pub sales to further reduce its debt levels. Investors will be keen to see if its debt levels are under control after recent deals, especially in a period of high interest rates, when it provides a market update next week.