Britons' thirst for premium lager drove strong sales at pub group Marston's during the Easter weekend and May bank holidays, as the outlook on costs and consumer confidence improve.
Details
Customers are shifting towards premium lagers, which are out selling standard lagers, as they opt for quality experiences when they go out to restaurants and pubs, CEO Andrew Andrea said in an interview.
The company reported on Tuesday 16 May an underlying loss before tax of £3.6 million for the half year ended 1 April, compared with a loss of £7.5 million last year.
Shares in the company rose as much as 5.9% to 39.3 pence in morning trade on Tuesday 16 May.
Marston's, which has more than 1,450 pubs and bars across Britain is primarily based in local communities, with less than 10% of outlets in city centres.
"The macro environment is becoming increasingly stable and recent evidence suggests that both the cost outlook, and consumer confidence, are steadily improving," Andrea said in a statement.
Food prices in Britain rose by a record amount over the past 12 months, but lower prices are on the horizon, according to the British Retail Consortium (BRC).
The Wolverhampton-based pub group, which did not reinstate dividend payments for the year, ended the half-year period with 1.20 billion pounds in debt, a reduction of 12.1 million pounds from the last fiscal year.
The reduction was in line with Marston's goal of "Back to a Billion", which includes sales of 1 billion and debt below a billion by 2026.
Resilient customer spending has helped the UK hospitality industry manage pressures from rising costs and continue its recovery from pandemic lows.
Last week, JD Wetherspoon said the May Day weekend was the busiest ever Saturday as demand for its cut-price lager and cocktails led it to forecast annual profit at the higher end of analyst expectations.
Current Trading
Marston's added that current trading had been positive, with like-for-like sales in the last six weeks up 7.9% from last year.
Read More: Pub Group Marston's Secures Amendment, Extension Of Debt Facilities
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