:. Food Industry News

Categories: Corporate Results

Marston's Sales Fall, Says Margins Under Pressure

Source: Reuters
15/10/2008

London, Oct 15 - Pub and brewing company Marston's reported a fall in full-year like-for-like sales on Wednesday, and said margins had come under pressure from rising food, energy, and brewing costs.

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However, the group said earnings before exceptional items would be in line with expectations in 2008 as it benefited from a slightly reduced tax charge.

Marston's, which has more than 2,000 pubs in the UK including the Pitcher & Piano chain, said costs related to employment, food, energy, and raw materials were expected to rise by 12 million pounds ($21.05 million) next year.

Marston's said it would need to achieve like-for-like sales growth of about 3 percent this year if it is to achieve a similar level of operating profit in its managed pubs division.

In the year to Oct 4, Marston's said like-for-like sales at its managed pubs were down 0.6 percent. At its tenanted and leased pubs comparable sales were down 1.7 percent.



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