Marston's enjoys merry Christmas

28th Jan 2011 07:03

Though its trading statement contained the now familiar grumble about the miserable weather in December, pubs owner and ale brewer Marston's said profitability was in line with expectations in the 16 weeks to 22 January.In the group's managed pubs division like for like (LFL) sales over the period were 2.1% higher than a year earlier. Sales of food saw LFL growth of 4.4% while sales of booze, soft drinks and hot drinks rose 1.2% on a LFL basis.Focusing on just the six weeks to 8 January, LFL sales were flat, however. Panmure Gordon had predicted like for like sales growth of 1%, albeit for a different period - the eight weeks to 22 January.LFL sales in the festive period, running from 23 December to 3 January, were up 11.2%.The division's operating margin was slightly ahead of the year before.Things were less rosy in the group's tenanted and leased pub division, though the trends are improving. LFL profits are estimated to be down 1% year on year, an improvement on the 4% decline seen in fiscal 2010. The group attributed the improvement to the roll-out of the franchise-style Retail Agreement, now operating in 160 of Marston's pubs.On the brewing side, volumes were up 6% on last year, while the ale market as a whole in the UK was down by around 7% over the same period.Net debt and cash flow are in line with our expectations, the company said.