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(Sharecast News) - Pub operator Marston's reiterated full-year guidance on Tuesday, despite a dip in underlying sales, following a bumper World Cup.
Updating on trading over the 42 weeks to 18 July, the firm - which has more than 1,300 pubs - said the football World Cup had boosted business, with like-for-like sales on England match days soaring 22%. Sales rocketed 170% year-on-year across its grandstand pubs.
It also noted that its new pub formats were continuing to deliver "excellent" underlying sales growth, with grandstand the "standout performer". The large-scale format, which was launched last year, is focused on sports and features big screens, sound systems and tiered seating.
Year-to-date like-for-like sales fell 1.6%, after softer off-peak market conditions offset strong growth in peak occasions.
But the group said it remained confident in delivering full-year market expectations for consensus underlying pre-tax profits of 78.5m.
Justin Platt, chief executive, said: "Our pubs have delivered a strong start to the summer, with an excellent World Cup once again underlining the enduring role of the community pub as the place the nation comes together to cheer the moments that matter.
"Supported by a clear strategy, disciplined cost control and continued investment in our new formats, we are well positioned for the summer trading period ahead. Given this, as well as our progress on leverage reduction, the group is well-placed to recommence shareholder returns in the 2027 full year."
As at 1115 BST, the FTSE All-Share stock had softened 2% at 54.1p.
Greg Johnson, equity research analyst at Shore Capital - which has a 'buy' recommendation on the stock - said: "Marston's update was not without soft spots, with like-for-like sales remaining below peers. Yet the key messages are positive. Margin delivery continues to build, and management has now given its clearest steer yet on future shareholder returns.
"In football terms, Marston's heads into the final hydration break 2-1 up."
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