Mitchells and Butlers like-for-likes hit by bad weather

Mitchells & Butlers (M&B), the managed pub operator, has reported like-for-like sales growth of 0.4% in the 14 weeks to 14 July, with sales hit by the poor weather and Euro 2012 but mitigated by a strong performance over the Jubilee.

While like-for-like food sales increased by 2% in the 14 weeks, drink like-for-likes declined 1.4%. M&B said trade had been “in particular adversely impacted by the persistent wet weather and the negative impact of the European Football Championships”.

But the company added: “Within this, trading on key days and special occasions has remained strong with 4% like-for-like sales growth over the five days of the Diamond Jubilee weekend.” The meant that like-for-like growth in the first nine weeks of the period was stronger, at +1.6%.

Like-for-likes across the 42 weeks to 14 July were +1.9% (food: +2.9%, drink: +0.9%). In the retained estate, total sales in the 42 weeks were up 5.1%, with total company sales including the impact of disposals up 2.6%.

M&B said the roll-out of Wi-Fi across its estate is now more than 50% complete, while trials of its “ways of working” operations management process “progressing well”.

“Overall, the business transformation programme remains on track.”

M&B said the process of finding a new chief executive and more non-executive directors “is continuing and remains a priority for the board”.

On its outlook, the company said: “Trading conditions remain challenging with a difficult consumer environment together with ongoing inflationary cost pressures. However, the combination of our strong brands, assets and operating capabilities as well as the benefits from the business transformation programme leave us well positioned to grow the business.”

Bob Ivell, M&B executive chairman, said: “Despite the continuing poor weather and challenging economic conditions, we are continuing to deliver a resilient operating performance. Our business transformation programme is progressing well and we are increasing the focus on guest service in all parts of the business.