25 July 2024
Mitchells & Butlers
plc
LEI no.
213800JHYNDNB1NS2W10
Third Quarter Trading
Update
Trading statement covering the 42
weeks ended 20 July 2024.
Sales
Following a very strong start to the
year sales growth has remained ahead of the
marketa through the third quarter, with like-for-like sales growth of
5.7% in the year to date and all brands in growth. 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.
The current run rate of
like-for-like sales growth, over the most recent 13 weeks to
exclude Easter in both years, is 4.2%.
Like-for-like sales:
|
|
Weeks
1-15
Q1
|
Weeks
16-28
Q2
|
Weeks
1-28
H1
|
Weeks 29-42
Q3
|
Weeks 1-42
YTD
|
|
Food
|
8.7%
|
6.6%
|
7.7%
|
2.6%
|
6.0%
|
|
Drink
|
6.6%
|
5.3%
|
6.0%
|
4.0%
|
5.3%
|
|
|
|
|
|
|
|
|
Total
|
7.7%
|
6.1%
|
7.0%
|
3.4%
|
5.7%
|
Total sales in the year to date have
increased by 7.3%.
Investments
In the year to date we have
completed 139 conversions and remodels and have opened six new
sites in addition to the continued rollout of a number of
initiatives to reduce energy usage, such as solar panels and
sensors.
Outlook
We continue to anticipate net cost
headwinds in the region of £55m this financial year with increases
in labour costs due to the statutory National Living Wage rise
mitigated in part by deflation in our energy costs (which are now
substantially all bought forward for the year), slowing food cost
inflation and strong cost control at site level. Coupled with a
robust sales performance we believe this will allow us to continue
to rebuild margins and we remain very confident in the delivery of
full year consensus expectations.
Phil Urban, Chief Executive,
commented:
"We are pleased with the continued
strong trading performance, which has remained ahead of the
marketa 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.
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, value
proposition and enviable estate locations, we are well positioned
to continue to grow profitability and market share into next
year."
Definitions
a - As measured by the CGA Business
Tracker.
For further information, please
contact:
|
Tim Jones - Chief Financial
Officer
|
+44 (0)121 498 6112
|
|
Amy de Marsac - Investor Relations
|
+44 (0)121 498 6514
|
|
James Murgatroyd (FGS
Global)
|
+44 (0)20 7251 3801
|
Note for editors:
Mitchells & Butlers is a leading
operator of managed restaurants and pubs. Its portfolio of brands
and formats includes Harvester, Toby Carvery, All Bar One, Miller
& Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse,
Vintage Inns, Browns, Castle, Nicholson's, O'Neill's, Ember Inns,
and Ego Restaurants. In addition, it operates Innkeeper's
Collection hotels in the UK and Alex restaurants and bars in
Germany. Further details are available at www.mbplc.com and
supporting photography can be downloaded at
www.mbplc.com/imagelibrary.