25th Nov 2021 09:41
(Alliance News) - Mitchells & Butlers PLC on Thursday reported a narrowed loss due to a "strong" reopening performance but noted it still faces cost headwinds.
The Birmingham, England-based operator of pubs, bars and restaurants said pretax loss in the year ended September 25 narrowed to GBP42 million from GBP123 million compared to the year before.
Operating profit in the year multiplied to GBP81 million from GBP8 million the year before. The company explained this reflects the strong return to profitability when its sites reopened after pandemic restrictions were lifted in the UK.
Annual revenue fell 28% to GBP1.07 billion from GBP1.48 billion. The company blamed this on Covid-19 restrictions that limited trading.
Furthermore, Mitchells & Butlers said that 2020 is not an appropriate comparison because the pandemic disrupted trading in both years considerably. Drinks like-for-like revenue in financial 2021 was down 22% versus financial 2019 but, more promisingly, Food revenue was up 2.5%. In total, like-for-like sales was down 9.6% from financial 2019.
The company declared no dividend and stated it "has agreed not to pay an external dividend, undertake any share buy-backs, or repurchase bond debt until January 2023 at the earliest."
The pub chain owner said trading has been encouraging since pandemic restrictions have been lifted in the UK but still noted headwinds through continued cost pressures.
"Despite the inevitable challenges faced by our business over the past year we are now well-positioned to regain the momentum previously built as we come out of the pandemic," Chief Executive Phil Urban said.
"The trading environment remains challenging and cost headwinds continue to put pressure on the sector. However, we have strengthened our balance sheet and returned to profitability and cash generation, allowing us to resume our capital plan and ignite programme which will deliver sales and efficiency improvements to help combat these challenges."
Shares were up 1.4% at 239.40 pence each on Thursday morning in London.
By Abby Amoakuh; [email protected]
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