Marston's sales rise, sees 'no discernible impact' from Brexit

FTSE 250 pub operator Marston’s said on Wednesday that it has not seen any discernible impact from Brexit on trading to date as it updated investors on its third quarter.

In the 42 weeks to 23 July, like-for-like sales in its destination and premium business were up 2.5% on last year, including LFL food sales growth of 2.1% and LFL wet sales growth of 2.6%.

In the most recent 16 weeks of the period, LFL sales were 1.8% higher despite the expected adverse impact of the Euro 2016 football tournament on predominantly food-led pubs.

In the company’s Taverns division, LFL sales for the 42-week period were 2.8% ahead of last year, with growth of 2.5% in the last 16 weeks, with Euro 2016 contributing to this continuing strong performance and helping to offset mixed weather.

In the leased business, profits for the 42-week period are estimated to be 2% higher than last year and Marston’s said the Pubs Code introduced by the government this month is not likely to have a material impact.

The Pubs Code gives tenants more rights and greater protection when dealing with large pub companies that own tied pubs.

In the brewing segment, own-brewed beer volumes were up around 14% compared to last year.

Chief executive officer Ralph Findlay said: “We continue to be encouraged by our performance. As expected, Euro 2016 was broadly neutral for the group as a whole and we have continued to maintain our market outperformance by focusing on offering our customers great experiences and value in modern pubs and bars.

“In Brewing, we are growing in an attractive market, demonstrating the effectiveness of our new product development and the appeal of our brand portfolio, underpinned by industry-leading service.”

At 0927 BST, Marston’s shares were up 1.1% to 140.78p.