Marston's sees FY profit ahead of market expectations

(Sharecast News) - Pub group Marston's said on Wednesday that full-year underlying pre-tax profit was set to be ahead of market expectations. Consensus expectations are for FY 2025 profit of £67.2m. In an update for the year to 27 September, the company said this marked a second consecutive year of significant profit growth after the 65% increase seen in FY 2024.

Marston's said profitability was underpinned by sustained margin expansion through its "market leading" pub operating model, including revenue management, labour efficiency and procurement initiatives.

It also said underlying EBITDA margins are expected to rise by more than 100 basis points on the year, as it delivers on the financial targets outlined at the Capital Markets Day last October.

Like-for-like sales grew 1.6% during the year, continuing to outpace the total market, Marston's said.

In addition, recurring free cash flow is expected to be in excess of the CMD target of £50m, and to be achieved ahead of schedule.

Chief executive Justin Platt said: "We have delivered another year of strong profit growth and significantly improved recurring free cash flow, providing us with continued opportunity to invest in our estate, reduce debt and unlock long-term value for shareholders. Our market-leading pub operating model has been central to delivering strong margin uplifts, while guest experience scores have reached record levels - a testament to the passion and dedication of our teams.

"Our differentiated pub-formats are already delivering impressive results with a defined plan to accelerate this further in FY2026.

"With clear strategic priorities and disciplined execution, we enter the new year with strong momentum. Our results demonstrate we are delivering as a high-margin hospitality business, and with our formats growth engine showing great promise, we are poised to drive further financial and strategic progress."

At 0807 BST, the shares were up 10.3% at 42.75p.