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Mitchells & Butlers says annual results to be at top of expectations

28th Sep 2023 09:32

(Alliance News) - Mitchells & Butlers PLC on Thursday reported "strong" trading in the final quarter of its financial year, saying annual results will be at the top end of market expectations.

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

Mitchells & Butlers reported like-for-like sales growth of 9.7% in the three months that ended September 23, a faster pace than the 9.1% growth seen in the financial year as a whole. The pace of increase matched the third quarter. Second-quarter growth was the weakest at 6.4% and first-quarter growth the strongest at just over 10%.

Total sales for the year were up 11%.

Within the like-for-like full-year growth figure, food sales increased by 8.6% and drink by 9.9%. In the financial fourth quarter, this relative performance was reversed, with food sales up 12% and drink up just 6.4%.

Mitchells & Butlers noted that like-for-like annual sales were up 11% from pre-Covid financial 2019, driven by spend-per-head.

Looking forward, it said cost headwinds were abating and remain at the bottom end of the range previously expected.

Mitchells & Butlers said it remains "mindful" of the challenging macroeconomic environment and pressures on the UK consumer but is confident that the current financial year will be at the top end of consensus expectations and lend momentum to financial 2024.

"We are delighted to have continued our strong like-for-like sales performance through the fourth quarter, underpinned by volume growth and reflecting increasing out-performance against the market," said Chief Executive Phil Urban.

Mitchells & Butlers shares were up 2.5% to 220.00 pence early Thursday in London.

By Tom Waite, Alliance News editor

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