Marston's reports solid first-half profit performance
By Josh White
Date: Tuesday 13 May 2025
(Sharecast News) - Marston's reported a strong first-half performance on Tuesday, returning to profit as operating margins improved and debt declined.
The London-listed pub operator said that for the 26 weeks ended 29 March, it recorded underlying profit before tax of £19m, reversing a £0.2m loss a year earlier.
Total revenue was broadly flat at £427.4m, with like-for-like sales up 1.3%, though post-period trading accelerated, with a 10.5% rise in the five weeks to 3 May.
Operating profit rose 20.1% to £63.3m, driven by efficiency gains in labour deployment and procurement, while its EBITDA margin expanded by 250 basis points to 20.1%.
Recurring free cash flow fell to £5.9m due to working capital timing and increased capex, but Marston's reiterated confidence in delivering over £50m annually in the medium term.
Net debt, excluding IFRS 16, dropped to £881.1m, helped by proceeds from the CMBC disposal, reducing the leverage ratio to 4.9x from 5.2x at the 2024 year-end.
The group said it was on track to meet full-year expectations, with strong trading during key events and continued rollout of strategic initiatives, including new pub formats and expanded digital ordering.
It said 18 of 30 planned openings for the 2025 financial year had already been completed, with capital expenditure for the full year forecast at around £60m.
"The first half has been a period of significant momentum for Marston's, with the execution of a market leading pub operating model, investment in our differentiated pub formats and progress in our digital transformation driving strong margin and profit growth," said chief executive officer Justin Platt.
"Through our impactful calendar of demand-driving events and the dedication of our passionate, local teams, we continue to deliver great guest experiences every day, powering our industry-leading guest reputation scores."
Platt said that with strong recent trading across the company's nationwide estate of local pubs, Marston's was "excited" for the summer months.
"We remain confident in achieving our financial goals for the full year and focused on executing our strategy as a pure play hospitality company to deliver sustainable growth and increasing returns for our shareholders."
Reporting by Josh White for Sharecast.com.
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