British pub operator Marston's has reported a notable increase in profits, buoyed by heightened demand and effective cost management strategies.
The Wolverhampton-headquartered company informed the market this morning that its underlying pre-tax profit soared to £19m in the first half of the year, a substantial rise from a marginal loss of £0.2m in the previous year, as reported by .
Marston's operating profit saw a 20.1% uplift to £60.3m, while its earnings before interest, tax, depreciation, and amortization (EBITDA) climbed by 13.8% to reach £85.9m.
Despite this, the firm's overall revenue dipped slightly by 0.2% year-on-year to £427.4m, which includes the impact of approximately £50m in disposals made in 2024.
The pub chain attributed its robust recovery to "strong operational delivery" alongside cost-saving initiatives, which have led to a 2.5% enhancement in its EBITDA margin.
Marston's highlighted that advancements in data and technology, particularly in labour management and procurement, have been instrumental in driving these EBITDA improvements.
In the previous year, Marston's was among several leading º£½ÇÊÓƵ hospitality firms that penned a letter to Chancellor Rachel Reeves. The letter cautioned that proposed changes to employers' labour taxes could push some businesses to the brink of liquidation, while forcing others to significantly cut back on staff numbers and investment.
Conversely, just last week, brewing behemoth Heineken announced plans to inject £40m into its º£½ÇÊÓƵ pub subsidiary Star Pubs, which is expected to generate 1,000 new jobs. This investment will benefit 608 pubs, representing about a quarter of Star Pubs' estate.
Justin Platt, CEO of Marston's, reflected on the first half of the year as a "period of significant momentum for Marston's."
"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.
"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," Platt said.
