29th Jul 2021 12:42
(Alliance News) - Mitchells & Butlers PLC on Thursday said total sales in its financial year to date are 35% of pre-Covid levels but maintained it is in strong position coming out of the pandemic as restrictions ease further.
Shares in Mitchells & Butlers were down 0.9% to 281.20 pence each in London on Thursday afternoon.
The Birmingham, England-based operator of pubs, bars and restaurants said total sales covering the 43 weeks ended July 24, its first three quarters, are at 35% of pre-Covid levels.
On April 12 the company initially opened 16% of its estate for outdoor trading only, building to 44% by 16 May as restrictions eased across Scotland and Wales. During these initial five weeks like-for-like sales were at 63% of pre-Covid levels.
Since May 17 all of the company's estate has been open for 10 weeks of trading both indoors and outdoors, during which sales have been described as "volatile".
In the first five weeks like-for-like sales were at 98% of pre-Covid levels, supported in particular by pent up consumer demand on full re-opening.
However, across the following five weeks, activity was slower on average, with like-for-like sales at 89% of pre-Covid levels although most recently there has been some sign of improvement following further easing of restrictions on 'Freedom Day' in England on July 19, the firm said.
"Aside from the impact of certain games during the Euro 2020 football tournament, sales have generally been stronger in suburban and food-led brands, with city centre sites being the most challenged," Mitchells & Butlers said.
"The continuing uncertainty relating to the pandemic still makes forward guidance difficult, and is likely to do so at least until into the Autumn. However with our diversified portfolio of well-known brands and largely freehold estate, and our continued focus on efficiency though our Ignite programme, supported by a strengthened balance sheet, we are in a strong position coming out of the pandemic as restrictions ease further," said Chief Executive Phil Urban.
By Amrit Sahota; [email protected]
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