25th Jul 2024 12:11
(Alliance News) - Mitchells & Butlers PLC on Thursday reported higher quarterly sales, as the restaurant, pub and bar operator said it looks ahead with confidence.
The Birmingham, England-based company owns chains such as Harvester, All Bar One and O'Neill's. It said that "following a very strong start to the year", sales growth has remained ahead of the market through the third quarter.
Mitchells & Butlers said total sales in the financial year to date are up 7.3% on a year before.
Like-for-like sales growth in the year so far is 5.7%, with growth in both its Food and Drink arms. The company's third quarter ended on July 20 and during that quarter alone, like-for-like sales grew 3.4% annually.
"As anticipated, the third quarter growth rate reflects the movement of Easter into our fiscal first half this year, coupled with a progressive easing of the inflationary environment, through a period of generally wet weather," Mitchells & Butlers said.
Looking ahead, Mitchells & Butlers said it continues to expect cost headwinds of around GBP55 million in the financial year, with increases in labour costs due to the statutory National Living Wage rise mitigated in part by deflation in our energy costs, slowing food cost inflation, and strong cost control at site level.
It added that it is "very confident" in the delivery of full year consensus expectations.
Chief Executive Phil Urban said: "We are pleased with the continued strong trading performance, which has remained ahead of the market through the year. As inflationary pressures have eased the level of price increase we have taken has reduced, leading to headline sales growth in line with more normalised levels as expected during the second half. The combination of easing inflationary costs and continued sales growth will ultimately benefit our profit levels for the year."
Shares in Mitchells & Butlers were down 0.5% to 299.50 pence each in London on Thursday around midday.
By Sophie Rose, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.