Marston's Plc · LSE:MARS

Marston's — H1 2025 Earnings Presentation

32 slides from Marston's's earnings presentation, May 13, 2025

  1. Slide 1: Interim Results

    th > A eS es A 13 May 2025 MARSTONS Interim Results

  2. Slide 2: Today's Agenda

    Today’s Agenda Key Headlines 1 Justin Platt CEO Financial Performance 2 Hayleigh Lupino CFO Strategic Progress 3 Justin Platt CEO Summary & Outlook 4 Justin Platt CEO 5 Q&A 2

  3. Slide 3: Strong momentum with strategic value drivers fuelling growth

    Strong momentum with strategic value drivers fuelling growth Good LFL Strong earnings revenue growth delivery Significant strategic Confident in progress full year outlook Delivering against Capital Markets Day targets 3

  4. Slide 4: Financial Performance

    FINANCIAL PERFORMANCE 4 HAYLEIGH LUPINO, CFO

  5. Slide 5: H1 2025 financial highlights

    H1 2025 financial highlights LFL performance3 Total revenue EBITDA £427.4m £85.9m 10.5% Flat +14% 2.9% 1.9% 0.7% EBITDA margin Underlying PBT 20.1% £19.0m +250bps +£19.2m Q1 Q2 5-wks 31-wks Underlying cash flow performance is strong Recurring FCF1 Net debt2 • Lower RFCF reflects temporary working ca

  6. Slide 6: H1 performance underpinning confidence in full-year outlook

    H1 performance underpinning confidence in full-year outlook1 £m H1 2025 H1 2024 Comment Revenue 427.4 428.1 c.£50m disposals in FY2024. EBITDA 85.9 75.5 EBITDA Margin (%) 20.1 17.6 c.250bps improvement in H1 2025. Pub operating profit 63.3 52.7 Net finance costs2 (44.3) (52.9) Supported by reduction

  7. Slide 7: Disciplined execution delivering margin expansion

    Disciplined execution delivering margin expansion Expect FY 2025 EBITDA margin Movement in EBITDA margin to be in line with market expectations1 1.2% 20.1% 0.4% 1.2% 17.6% (0.5)% • Productivity gains fully 0.2% offsetting April NI & NMW increases • Input costs well managed and tight control of overh

  8. Slide 8: Underlying cash flow performance remains strong

    Underlying cash flow performance remains strong H1 2025 movement in recurring free cash flow £3.0m £(9.3)m Increased capex in line with £5.5m strategic objectives. Working capital driven by timing differences. £10.4m £(9.0)m £(1.8)m £7.1m £5.9m Increased Net interest Pension Increased Movement worki

  9. Slide 9: Continued deleveraging supporting balance sheet strength

    Continued deleveraging supporting balance sheet strength £m H1 2025 H1 2024 Comment Property, plant and equipment 2,078.5 2,053.4 Other assets1 101.2 332.6 Sale of CMBC in July 2024. Net debt (excl. lease liabilities) (881.1) (1,160.9) Lease liabilities (IFRS 16) (371.3) (375.6) Other liabilities1 (

  10. Slide 10: Debt and financing update

    Debt and financing update Extension to banking facility secured Debt/EBITDA leverage now 4.9x1 Securitisation: -29% • Long-term securitisation of £539m to 2035, and non- £1,247m £1,204m £1,161m utilised £120m liquidity facility Long-term leases: £881m • £339m other lease-related borrowings and £371

  11. Slide 11: Summary and financial outlook

    Summary and financial outlook Strong H1 performance provides confidence in full-year financial delivery Trading Costs Sustained LFL revenue Labour productivity growth & operational discipline Margin Cash Efficiency gains & Capex reinvestment & revenue growth initiatives deleveraging On track to deli

  12. Slide 12: Strategic Progress

    STRATEGIC PROGRESS 12 JUSTIN PLATT, CEO

  13. Slide 13: Delivering growth with our focus on key value drivers

    Delivering growth with our focus on 5 key value drivers To create VISIONa high margin, highly cash generative local pub PURPOSE company based on differentiated formats and a brand portfolio that is naturally balanced to appeal across a range of consumer segments KEY VALUE DRIVERS 1 Execute a Market

  14. Slide 14: Good progress executing a market leading operating model

    Good progress executing a market leading operating model Continued revenue momentum Powerful events driving visitation • Record trading on both Christmas Day and Mother’s Day • 4 major demand driving events in H1 • +2.9% LFL Revenue growth1, ahead of the market • Targeting full range of guest demogr

  15. Slide 15: Good progress executing a market leading operating model

    Good progress executing a market leading operating model Relentless focus on driving cost efficiency • Enhanced, data-led labour scheduling LABOUR • Overhead reductions - support team redesign FOOD • Format-led category management + DRINK • Rigorous approach to food and drink input costs ENERGY • Fi

  16. Slide 16: Good progress executing a market leading operating model

    Good progress executing a market leading operating model Delivering industry leading guest satisfaction MARSTON’S REPUTATION SCORE MARCH 2025 800 MARCH 2024 787 • New, award-winning food menus1 • Improved Order at Table service • Guest obsessed – focused on getting it right every time • Welcoming an

  17. Slide 17: Efficient use of capex to create differentiated pub formats

    Efficient use of capex to create differentiated pub formats Significant YTD progress on rollout plan 30 new pub launches planned in FY25 Revert back to previous photo Layout like this with shadow • 18 NEW pub launches completed YTD • Progressing on-time and on-budget • Initial trading very strong +3

  18. Slide 18: Marston's Two Door brand showing very promising signs of success

    Marston’s Two Door brand showing very promising signs of success Zoning to Two Pubs appeal to in One distinct demographics A pub where A pub where families adults want to eat want to drink

  19. Slide 19: Delivering on our digital transformation journey

    Delivering on our digital transformation journey Major launch of new Order & Pay platform • Launched March 2025 • Significant upsell and data opportunity • Supports outdoor summer visit experience • 10%+ uplift in Revenue per transaction 19

  20. Slide 20: H2 outlook very encouraging

    H2 outlook very encouraging Driving demand to sustain revenue growth Full confidence in cost management • Labour productivity – right people, right time LABOUR • Negates impact of NI & Minimum Wage increases FOOD • Majority of H2 costs known and fixed + DRINK • Relentless discipline in managing inpu

  21. Slide 21: Summary and outlook

    Summary and outlook Strong H1 Encouraging performance full year outlook Significant momentum Confident in H2 executing the strategic delivery & FY25 value drivers expectations Delivering against Capital Markets Day targets 21

  22. Slide 22: Q&A

    MARSTONS Q&A

  23. Slide 23: Appendices

    APPENDICES 23

  24. Slide 24: Continued progress on our ESG agenda

    Continued progress on our ESG agenda H1 highlights showcasing tangible ESG delivery • Saved 1,312 tonnes of food waste in H1 2025 PRODUCT • On track to achieve our 2030 target - 76.4% already delivered • 39 sites solar enabled, including Pub Support Centre PLANET • Largest private EV charging networ

  25. Slide 25: Capital Markets Day targets

    Capital Markets Day targets Revenue growth ahead of EBITDA margin expansion the market1 of 200-300 basis points Over £50 million recurring >30% ROIC on investment free cash flow2 focused capex Expect to achieve over the near-to-medium term 25 1. Market is forecast to grow at 3% CAGR, according to Mi

  26. Slide 26: Statutory P&L

    Statutory P&L £m H1 2025 H1 2024 Comment Revenue 427.4 428.1 Operating profit1 61.3 51.8 Profit / (loss) before tax1 19.5 (26.9) Earnings / (loss) per share (p)1 2.3 (3.2) Loss from associates (discontinued) - (16.6) 26 1. From continuing operations.

  27. Slide 27: IFRS 16 vs. FRS 102 profit comparison

    IFRS 16 vs. FRS 102 profit comparison1 IFRS 16 FRS 102 IFRS 16 FRS 102 £m H1 2025 H1 2025 H1 2024 H1 2024 Revenue 427.4 427.4 428.1 428.1 Net operating expenses (364.1) (369.6) (375.4) (380.4) Operating profit 63.3 57.8 52.7 47.7 Net finance costs (44.3) (37.5) (52.9) (46.0) Profit / (loss) before t

  28. Slide 28: IFRS 16 vs. FRS 102 analysis

    IFRS 16 vs. FRS 102 analysis £m H1 2025 H1 2024 Depreciation: Non-IFRS 16 16.8 16.7 Depreciation: IFRS 16 5.8 6.1 Total Depreciation 22.6 22.8 Interest: Non-IFRS 16 37.5 46.0 Interest: IFRS 16 6.8 6.9 Total Interest 44.3 52.9 FRS 102 net rent charge 11.3 11.1 28

  29. Slide 29: Overview of pub estate

    Overview of pub estate Pubs Lodges Total £m Number Value (£m) Number Value (£m) Value (£m) Securitised 841 1,137 7 16 1,153 Non-securitised Unsecured freehold 138 251 5 13 264 Freehold – property lease 127 330 10 28 358 Total freehold 1,106 1,718 22 57 1,775 Leasehold 227 269 8 13 282 Total 1,333 1,

  30. Slide 30: Securitised debt profile

    Securitised debt profile Tranche Type Principal outstanding1 Step-up date Final maturity A2 Fixed / Floating £84.0m July 2019 2027 A3 Fixed / Floating £200.0m April 2027 2032 A4 Floating £101.8m October 2012 2031 B Fixed / Floating £155.0m July 2019 2035 Total - £540.8m 30 1. Principal outstanding a

  31. Slide 31: Debt profile

    Debt profile Securitised debt service1 90 Max £81.1m Debt 75 Service A3 step up 60 Principal 45 30 Interest 15 0 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 £m FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Principa

  32. Slide 32: Estate by operating model

    Estate by operating model1 No. of Pubs Revenue (£m) EBITDA (£m) Operating Profit (£m) £m H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 Managed and Partnership2 1,182 1,186 415.2 411.4 79.0 66.3 57.0 44.1 Tenanted and Leased2 151 209 12.2 16.7 6.9 9.2 6.3 8.6 Total 1,333 1,395 427.4

Marston's — H1 2025 Earnings Presentation on 6ix