Marston’s: Pub chain swings back into the black
British pub chain Marstons has reported a significant uptick in profit amid higher demand and cost savings.
The hospitality giant told markets this morning that underlying profit before tax increased to £19m in the first half of the year, up from a loss of £0.2m last year.
Operating profit increased by 20.1 per cent to £60.3m, while earnings before interest, tax, depreciation and amortization (EBITDA) rose 13.8 per cent to £85.9m.
Overall revenue fell 0.2 per cent year on year, to £427.4m, despite around £50m of disposals in 2024.
Marston’s said its recovery was underpinned by “strong operational delivery” and cost-saving measures, with a 2.5 per cent improvement in its EBITDA margin.
The pub owner said data and technology-led improvements in labour and procuring goods had driven the EBITDA change.
Last year, Marston’s joined a group of the UK’s biggest hospitality businesses in writing to Chancellor Rachel Reeves, warning that her changes to employers’ labour taxes would force some businesses into liquidation and that others will have to drastically reduce their headcount and slash investment.
However, last week brewing giant Heineken said it would invest £40m in UK pub subsidiary Star Pubs, creating 1,000 jobs. The investment will reach 608 pubs, around a quarter of Star Pubs’ portfolio.
Justin Platt, CEO of Marston’s, said the first half of the year has been 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.