27th Nov 2024 09:30
(Alliance News) - Mitchells & Butlers PLC on Wednesday hailed a "very strong" annual performance, noting that the new year has kicked off in a positive fashion.
The Birmingham, England-based operator of restaurants and pubs and owner of All Bar One, Miller & Carter and O'Neils swung to a pretax profit on-year of GBP199 million, from a loss of GBP13 million.
This was supported by an increase in revenue for the FTSE 250-listed firm, up 4.4% over the period to GBP2.61 billion from GBP2.50 billion, with the strong trading driven by sustained like-for-like sales growth.
Like-for-like sales grew by 5.3% to GBP2.36 billion from GBP2.24 billion the prior year, with the firm highlighting its market leading growth and acknowledging its contribution towards profit recovery.
Divisionally, both food and drink sales both performed well, with like-for-like food sales increasing on-year by 5.3% to GBP1.24 billion from GBP1.18billion and with like-for-like drinks sales up 4.9% to GBP1.03 billion from GBP988.3 million over the same period.
Also boosting the firm's bottom line throughout the financial year was a marked on-year reduction in its "separately disclosed" costs which fell to GBP12 million from GBP128 million.
Last financial year Mitchells & Butlers incurred a GBP110 million impairment cost from the revaluation of freehold and long leasehold properties, which compares with GBP4 million in credit realised in financial year 2024.
On current trading, the firm reported a strong start to financial year 2025 with like-for-like sales of 4.0% in the first seven weeks, but said it expects to see a normalised level of sales growth in the new financial year as the inflationary environment eases.
It added that the recent increases in both the national minimum wage and employer national insurance contributions are expected to deliver "by far the most significant increase" in cost headwinds.
No dividends were declared or paid during the current or prior trading period.
Chief Executive Phil Urban said: "We are delighted by the very strong performance during the year. Like-for-like sales continued to outperform the market which, coupled with easing inflationary costs and focus on efficiencies, has resulted in very strong profit recovery.
"We face increased inflationary cost headwinds in the year ahead. However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales."
The firm's shares were up 0.8% at 247.00 pence on Wednesday morning in London.
By Christopher Ward, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved