Marston’s Shares Rise As Positive Sales Momentum Continues

Marston's (LON: MARS) shares jumped at the open Tuesday after it said in its trading update for the 16-week period to January 21 that it continued to see positive sales momentum through the festive season.

Marston's share price is currently trading over 5% above Monday's close.

The British pub and hotel operator revealed like-for-like sales for the 16-week period increased by 12.9% compared to FY2022, while like-for-like sales in the first eight weeks of the period to November 26, 2022, rose 6.8%.

The company said its trading momentum was encouraging, continuing into the festive period, with the following eight weeks of like-for-like sales up 19.2% compared to FY2022.

For the five main festive days (Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, and New Year's Day), like-for-like sales increased by 26% year-over-year and by 12.9% compared to the 2019/20 festive period.

Meanwhile, total retail sales in Marston's managed and franchised pubs were up 14% on last year and up 7.3% compared to FY2020. Moreover, drink sales continued to outperform food sales, the company said, “once again reinforcing the steadfast trading resilience of our predominantly community pub estate.”

Furthermore, Marston's said its electricity costs are now hedged for FY2023 until the end of September 2023, with no change to earnings guidance, while its gas price is fixed until the end of March 2025 with no further incremental spend expected.

“Whilst still early in the New Year, trading momentum continues to build, and our primary focus remains to meet our strategic goals of achieving £1 billion sales and reducing our debt to below £1 billion with all the subsequent benefits that both of those milestones will bring to our shareholders,” said Marston's CEO Andrew Andrea.