UK: Marston’s lowers full-year profit forecast
UK brewer and pub operator Marston's has said its pre-tax profits for the full year will be slightly lower than it had previously forecast due to the impact of higher interest rates, poor summer weather and costs stemming from floods in May.
But the company said earnings before exceptional items are anticipated to be in line with its original expectations, reflecting the impact of share buy-backs and the fact that the effective rate of tax is expected to be lower than last year.
Finance director Paul Inglett said in a conference call that full-year pre-tax profit would be no more than 2% or 3% below the company's original forecast of GBP100m. Earnings per share would be at least in line with the consensus forecast of GBP0.25 per share, he said.
In a statement, the company also said the smoking bans introduced in the UK this year had not discernibly affected sales, while positive sales trends seen in the first half had continued in the second half of the year.
The company's beer production and sales arm, Marston's Beer Company, performed "strongly and ahead of the market", Marston's said, with core ale brand volumes up by over 6% overall.
Marston's said its premium ale brands had continued to show strong growth, with Marston's Pedigree up by nearly 6% and Jennings Cumberland Ale up by 30%. Meanwhile, the Ringwood brand, acquired in July 2007, had also "performed well".
In spite of having to lower its profit forecast, the company was upbeat about the longer-term outlook. "We are well positioned to continue to benefit from current market trends, including growth in casual dining, and to derive further value from our integrated business model," Marston's said. "We remain confident about the future prospects for the group."
Marston's will publish its full-year results on 30 November.
Sectors: Beer & cider
- Whatever happened to binge Britain? - comment
- How to turn a domestic spirit into a global brand
- The dangers of squaring up to your competitor
- The US beer market - A level playing field for all
- Remy Cointreau's Q2 and H1 - preview
- Sidney Frank CEO to head Clooney's import co
- Diageo sells off United Spirits' Bouvet Ladubay
- Captain Morgan distillation trial queried by USVI
- Irish whiskey brands could fail without bulk
- Sazerac sues Brown-Forman over Tennessee Fire
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Wine Market to 2019 - Market Size, Development, and Forecasts