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Mitchells & Butlers on track for 2024 growth after festive success

17th Jan 2024 10:08

(Alliance News) - Mitchells & Butlers PLC on Wednesday said that sales from its strong festive season had continued into 2024, and expects full year results to be at the "top end" of expectations.

The Birmingham, England-based company operates restaurants and pubs under brands including Harvester, Toby Carvery, All Bar One, Nicholson's and O'Neill's.

The company reported a 7.7% increase in like-for-like sales in the 15 weeks ended January 13, alongside total sales growth of 9.7%. Food sales were up 8.7% over the period, while drink sales rose 6.6%.

The company said that its focus remains on estate investment, and has completed 34 conversions and remodels in the year to date. Mitchells and Butlers has also opened a new Alex branch in Germany, and said that it is "encouraged by the returns being generated" across its investments.

Aside from an anticipated 9.8% increase in the national living wage next April, the company believes that overall cost pressures are "abating."

"Based on the strong performance of the business so far this year, we now believe that the full year outturn will be towards the top end of current consensus expectations," the company said.

In November, the company reported full-year revenue of GBP2.50 billion, up from GBP2.21 billion in 2022. The company also swung to a pretax loss of GBP13 million from a profit of GBP8 million a year before.

Chief Executive Officer Phil Urban said: "We are delighted by the strong trading performance over the festive season, with very strong performances across our brand's portfolio thanks to the hard work of our teams.

"Our focus remains on the effective execution of our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. With the unique strengths of our business, including a diverse portfolio of established brands and enviable estate locations, we are well positioned to continue to grow profitability and market share in the year ahead."

Shares in Mitchells & Butlers were down 0.8% % at 252.80 pence each in London on Wednesday morning.

By Hugh Cameron, Alliance News reporter

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