29th Jan 2015 07:58
LONDON (Alliance News) - Mitchells & Butlers PLC on Thursday said it saw a good performance over the festive trading period, though it warned its margins remain under pressure owing to the integration of the Orchid business and pricing pressures.
The FTSE 250-listed pubs company said sales in the 17 weeks to January 27 have increased by 9.1% year on year, with like-for-like sales rising 1.7%.
The company said its trading performance over the festive period, the two weeks over Christmas and New Year, was strong, with like-for-like annual sales growth of 4.8%. Like-for-like sales on Christmas Day rose 7.1%, it added.
The higher sales were supported by a rise in food volumes over the period, with like-for-like food sales rising 2.8% in the 17-week period.
But margins remains under pressure for the group, owing to the planned integration of the Orchid pub business, which it bought last year, and pricing pressures within a competitive pub environment.
The group said its electronic point of sale system is progressing on schedule and said it has acquired four sites and converted 15 in its financial year so far, including 6 Orchid conversions.
"We are pleased to have delivered a good trading performance over the important festive season. As we now move into the more difficult winter trading period we continue our focus on growing our business through increased volumes, upgrading infrastructure and further improving staff turnover and net promoter scores," said Chief Executive Alistair Darby.
By Sam Unsted; [email protected]; @SamUAtAlliance
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