24 July
2024
MARSTON'S
PLC
('Marston's' or 'the
Group')
STRONG LFL SALES GROWTH YEAR
TO DATE +5.2%
TRANSFORMATIONAL CMBC
DISPOSAL
Marston's, a leading UK operator of c.1,370 pubs, today
announces a trading update for the 42 weeks to 20 July
2024.
Trading update
All sale comparisons are compared to
the same period in FY2023.
Year-to-date, like-for-like sales
increased by 5.2% and total retail sales in the Group's managed and
franchised pubs increased by 6.2% as our portfolio of well-invested
community pubs continues to demonstrate its appeal.
Like-for-like sales increased by
2.4% in the 16-week period to 20 July 2024, compared to the same
period last year. We have seen considerable uplift from Euro 2024,
with like-for-like sales for the week of the semi-final and final
matches rising by 8.0%. This has helped to lessen the impact of
recent unseasonably wet weather and a particularly strong
comparative period last year.
We continue to see positive momentum
across both food and drink occasions. Food sales have been
particularly encouraging, with changes to our menu proving
increasingly popular with guests.
Carlsberg Marston's Limited ('CMBC')
As announced on 8 July 2024, the
Group agreed to the sale of its 40% interest in CMBC to a
subsidiary of Carlsberg for £206 million in cash. This
strategic and transformational transaction will enable Marston's to
become a focused, pure-play pub company and supports a significant
reduction in the Group's net debt to <£1 billion in a
significantly accelerated timeframe. The transaction is expected to
be accretive on adjusted earnings per share.
On 11 July 2024, the Financial
Conduct Authority confirmed the changes to the UK Listing Rules,
one of which means that shareholder approval is no longer required
for Class 1 transactions. These changes are due to come into effect
on 29 July 2024. The Board can therefore confirm that its intention
is to waive the requirement for the transaction to gain shareholder
consent when the new UK Listing Rules come into force. Completion
of the transaction is targeted for 31 July 2024.
Further announcements will be made
as and when appropriate.
Outlook
Debt reduction remains a central
focus for the management team and we intend to put financing in
place that is better suited to the new level of leverage in due
course. Marston's will provide an update to the existing
capital allocation framework at an Investor Day in the
autumn.
The trading momentum seen
year-to-date provides the Board with confidence that, adjusting for
the impact of CMBC, performance will be in
line with market expectations.
Commenting, Justin Platt, CEO said:
"The continued positive trading momentum carried through from
H1 has been encouraging. This is a testament to the focus and
energy of our team, who are dedicated to giving our guests the very
best pub experiences. The disposal of our 40% stake in CMBC marks a
pivotal step for Marston's, allowing us to become a pure play
hospitality business. I look forward to delivering on the
opportunities a focused pub business will
provide."
Forthcoming events
Please find below the forthcoming
reporting dates for Marston's, which are also available on the
investor calendar on our website - https://www.marstonspubs.co.uk/investors/
Year-end trading statement
9 October 2024
2024 Preliminary results
3
December 2024
Enquiries:
Marston's PLC
Justin Platt,
CEO
Tel: 01902 329516
Hayleigh Lupino,
CFO
Matthew Lee, Investor
Relations
matthew.lee@marstons.co.uk
Rebecca Jamieson, Investor
Relations
rebecca.jamieson@marstons.co.uk
Instinctif Partners (Media)
Justine
Warren
Tel: 020 7457 2010/2005
Matthew Smallwood
Joe Quinlan
Notes to editors
Marston's PLC, whose shares are
listed on the London Stock Exchange under the ticker MARS, is a
leading pub operator with an estate of c.1,370 pubs nationally,
comprising managed, partnership ('franchised') and tenanted and
leased pubs. Marston's employs around c.10,000 people. More
information is available at: https://www.marstonspubs.co.uk/.