Marston’s, a leading pub chain in the UK, has reported an increase in sales for the 16 weeks leading up to January 18th. This growth was fueled by strong holiday sales, but it was hampered by harsh weather conditions in November and January. Despite these challenges, Marston’s CEO Justin Platt remains optimistic about meeting market expectations for 2025.
Weather Impacts Sales
The cold and stormy weather experienced in parts of the UK during November and January led to a slowdown in sales growth for Marston’s. Analysts at JP Morgan suggest that Marston’s may have been more affected than its competitor Mitchells & Butlers due to its greater presence in regions hit hardest by the storms, such as Wales, Scotland, and Northern England.
Holiday Sales Boost Performance
Despite the weather-related challenges, Marston’s saw a significant increase in sales during the holiday period. Total retail sales were up 3% compared to the previous year, and like-for-like sales for the two weeks covering the most lucrative festive days rose by an impressive 11.1%.
Rising Costs and Price Increases
UK pubs, including them, are facing increasing cost pressures due to higher taxes and minimum wages. Marston’s has already indicated that it expects an £8.6 million impact on its 2024-2025 financial year due to higher employment costs. To mitigate these rising costs, Peel Hunt analysts predict that Marston’s will raise prices in March.
Market Expectations and Future Outlook
Despite the challenges posed by the weather and rising costs, Marston’s remains on track to meet market expectations for 2025. Analysts predict that the company will report an underlying profit before tax of £68.3 million in the fiscal year 2025, up from £42.1 million in 2024.
Additional Points:
- Marston’s is based in Wolverhampton, England.
- The company’s shares fell 2.5% in early trading following the sales report.
- Marston’s is actively managing the impact of higher employment costs.
- The company is expected to deliver sustainable growth and improve cash flow.
