By Anchal Rana
(Reuters) – Pub group Marston’s on Wednesday reported higher like-for-like sales thanks to demand for premium lagers and signature burgers during hot weather in Britain, driving its shares up 5%.
The Wolverhampton-based pub chain, which has several beer gardens, posted a 10.9% rise in sales for 16 weeks ended July 22 from a year ago.
“We invested very heavily in our garden areas ahead of the summer, because when the sun does shine, you know, there is a lot of demand to go to the Great British pub,” said CEO Andrew Andrea in a call with Reuters.
Customers spent on premium lagers like San Miguel and Variety beers, and paired it with signature burgers over entry point beers or burgers, Andrea added.
Rare hot weather during the period saw Britons flock to pubs and bars to enjoy the heat.
During the May bank holidays and King Charles’ coronation, UK households spent less at food retailers and ate out more in restaurants.
Food price inflation in Britain, which has hit spending power and driven higher costs for bars and restaurants, is projected to decline in the remainder of 2023. Marston’s expects a more positive outlook on input costs in financial year 2024, adding it is well-placed to navigate any consumer headwinds.
The pub chain had not declared a dividend since 2020 amid tough economic conditions, and while the group tries to bring its borrowing below a billion pounds ($1.29 billion).
The company expects to reduce debt by 50-60 million pounds by the end of the year.
It also reported a 10.7% rise in sales for the 42 weeks to July 22.
($1 = 0.7754 pounds)
(Reporting by Anchal Rana in Bengaluru; Editing by Sohini Goswami and Emma Rumney)
