Mitchells and Butler have announced their half-year results for 2023 with revenues of £1,282m (HY 2022 £1,159m) and. market-beating like-for-like sales growth of 8.5% and with strong sales over the last six weeks of 8.9%, (which includes Easter in both periods) with volume and spend per head growth on both food and drink. London is outperforming the rest of the UK as a result of the further return to office working and foreign tourism.
They also report that costs remain a challenge, with operating costs of £1,182m HY 2023 against £1,039m the previous year, but that the medium-term cost outlook is improving.
In June 2023, the company will also exercise their option to acquire the remaining shares in 3Sixty Restaurants Limited, owners of Ego of which they have held a 40% stake since August 2018. This will represent 26 sites (including 16 leased from M&B) with scope for up to 80 Ego sites.
Phil Urban, Chief Executive, commented, “We are pleased to report a strong first half performance delivering continued like-for-like sales growth and outperformance against the market.
“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”.
Mitchells & Butlers 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.