Mitchells & Butlers sees FY results at top end of expectations

22nd May 2024 07:57

(Sharecast News) - Pub group Mitchells & Butlers said on Wednesday that its full-year results were set to be at the top end of consensus expectations as it reported a rise in first-half profit.

In the 28 weeks to 13 April, operating profit jumped 64% from the same period a year ago to £164m, while pre-tax profit rose to £108m from £40m.

Total sales came in at £1.4bn, up 8.9%, with like-for-like sales up 7.0% and "strong" performances across all brands driven by increases in spend per head.

The company said overall cost inflation started to abate last year, and this has continued through the first half. While the recent level of statutory National Living Wage increases has been relatively high at about 10% in both the last two years, other costs have returned to more normalised levels and energy in particular has been in deflation so far this year, it noted.

Chief executive Phil Urban said: "Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in very strong profit recovery for the period."

The pub chain said it remains mindful of uncertainty and pressures on the consumer.

"However, as trading continues to be strong, we have confidence that the current year outturn will be at the top end of consensus expectations, with momentum for further progress going forward into FY 2025."