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Pub group Marston’s has increased like-for-like sales by 10.1% in the year to 30 September thanks to a “strong” performance for food and drink.
Sales momentum was hit by a wet summer, with like-for-like growth in the final ten weeks of the year up 7.7%, but the performance recovered to 12% in the last five weeks.
The group has fixed its energy costs for the new financial year and secured a significant proportion of our food and drink costs for the year.
A reduction in head office headcount costs of £5m is expected to led to higher pub operating profitability than was previously expected.
CEO Andrew Andrea said: “Two years ago, we set out our vision and strategy with a clear objective to create a simplified, high quality predominately suburban pub business, with minimal exposure to city centres where demand is more volatile. Operationally, we remain focussed on the core pillars of driving guest satisfaction in a great environment served by engaged and focussed teams, which remains relevant despite the macro challenges facing the consumer.
“The benefits of this strategy are now coming through.”
He added: “An improving outlook in which cost headwinds are abating, together with the actions we have taken this year to drive further efficiencies, leaves us confident that Marston’s remains well-placed to continue to outperform in the current macroeconomic environment, grow revenue and profitability, as well as deliver improved margin in the year ahead.”
Morning update
The FTSE opened 0.2% up at 7,642.38pts to hold on to yesterday’s gains in the early going.
Marston’s is up 2.1% to 29.5p after its trading update.
Just Eat Takeaway and Greencore both continnued to rise, up another 2.7% to 1,072p and 2.4% to 86p respectively.
Fever-Tree fell back 1.7% to 1,075.5p and McBride is down another 1.6% to 34.2p.
Yesterday in the City
The FTSE 100 surged 1.8% higher to 7,628.21pts yesterday.
Greencore was the big mover, with shares racing 21.7% higher to 83.7p as the food-to-go supplier upgraded full-year profit expectations.
Drinks ingredients firm Treatt also had a good day, jumping 12.8% to 477.5p as it returned to profitable growth.
Just Eat Takeway, Ocado and Fever-Tree also registered strong rises on a good day for fmcg shares, up 7.7% to 1,048p, 6.8% to 600.6p and 4.3% to 1,094p
The only faller of note was McBride, which sank 7.6% to 34.8p.
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