M&B sales up 8.5% in half-year results
Mitchells & Butlers sales growth built on volume growth in both food and drink.
Mitchells & Butlers (M&B) saw a like-for-like sales growth of 8.5% for the 28 weeks ended 8 April 2023, built on volume growth in both food and drink.
The Phil Urban-led business generated a turnover of £1.282bn during the period, compared to £1.159bn for its half year in 2022.
M&B says costs remain a challenge, but medium-term cost outlook is now improving. It says it continues to work hard to mitigate as many of these pressures as it can through
driving sales growth and identifying and implementing cost efficiencies. This, M&B believes, should allow margins to start to rebuild towards pre-Covid levels.
Operating profit for the period was £99m (£121m in 2022), while profit before tax was £40m (£57m in 2022).
"We are pleased to report a strong first half performance delivering continued like-for-like sales growth and out performance against the market," says Urban. "The trading environment for the hospitality sector remains challenging, with inflationary costs putting pressure both on the industry’s margins and disposable income of our guests. However, we are encouraged
by the resilience of trade to date, including the most recent six weeks at 8.9% like-for-like sales growth, and also by early signs of the medium-term cost outlook improving.
"We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. Combined with our diverse portfolio of established brands, value proposition, enviable estate locations and talented people, we believe we are well positioned to continue to outperform the sector."
M&B's portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson's, O'Neill's and Ember Inns.