Pub firm Marstons bounces back to profit after selling stake in brewing arm
Pub giant Marstons said the sale of its brewing arm was a "defining moment" as the firm announced a return to profit in its preliminary results.
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The firm saw total pre-tax profits of £14.4 million, turning round £30.6m loss in 2023, with the firm also reporting underlying growth of 64.5%.
The company operates 1,339 pubs across the UK, and earlier this year sold off its 40% stake in its Carlsberg Marston’s Brewing Company (CMBC), a joint venture with the Danish beer group, in order to focus on pubs and help boost its finances.
Chief Executive Justin Platt described the company's decision to sell its stake in CMBC for £206m in July as "transformational", as preliminary results showed the Wolverhampton firm significantly improved its balance sheet with a debt reduction of just over £300m.
"2024 has been a defining year for Marston’s as we began an exciting new chapter as a leading pure-play hospitality business. The sale of our stake in CMBC has been transformational, enabling us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs," he said.
"This single-minded focus, combined with our rejuvenated strategy, is already showing in strong financial results. We’ve delivered like-for-like sales growth ahead of the market, significant margin improvements and robust cash flow, while current trading is encouraging with Christmas bookings already ahead of last year."
Revenue was also up 3.0% to £898.6 million from £872.3 million last year, with like-for-like sales up 4.8%, and underlying pub operating profit up 17.9% to £147.2 million (2023: £124.8 million) with the company saying strong top-line performance and operational efficiencies were delivering improvements in the its underlying profitability.
An operational update issued with the figures said the company was "very confident in the Group’s outlook", adding that Christmas bookings were tracking ahead of expected levels with many of the company's venues securing high levels of reservations.
Marstons says it's now focused on building a "high-margin, highly cash-generative local pub company" along with a brand portfolio that is "naturally balanced to appeal across a broad range of consumer segments".
“Community-based pubs like ours play an essential role in UK society, backed by our hardworking local teams who give our guests great experiences every single day," added Mr Platt.
"All this gives Marston’s a superb foundation for sustainable, long-term growth, and fills us with confidence for 2025 and beyond.”
