Mitchells and Butlers return to profit and growth

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Mitchells and Butlers have reported sales growth of 1% over the first half of 2022 (28 weeks ending April) versus full-year 2021, with revenues of £1.16 billion, up from £219 million last year and pre-tax profit of £57 million, up from a loss of £200 million. Mitchells’ like-for-like sales over the latest second-quarter period rose 3.8% compared to the same pre-pandemic 2019 quarter.

This was driven by strong food sales which, according to the Company, continue to outperform drink, with like-for-like sales growth of 6.9% over the first half, and with premium brands continuing to perform well, helped by the reduced rate of VAT through to the end of March.  Suburban and rural areas also performed better than larger city centres although city centres are now recovering.

Phil Urban, Chief Executive, commented, “We are encouraged by the improvement in sales trajectory through the first half of the year, having made progress in each of our markets, with our food-led businesses continuing to lead the way.

“The trading environment remains difficult. Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages and food.

“In light of this, our teams have refocused their efforts on driving further efficiency and productivity gains through our Ignite programme. In parallel, we are pushing forward with our capital investment plan which we are pleased to see delivering strong sales uplifts.

“The fundamental strengths of the business remain, and we are well positioned to continue on our trajectory of recovery following the pandemic.”

Mitchells and Butler’s portfolio of brands 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. The Company also operates Innkeeper’s Lodge hotels in the United Kingdom and Alex restaurants and bars in Germany.

 

 

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