M&B ‘well positioned to grow profitability’

Total sales in the year to date increased by 7.3%, according to the trading statement, which covered the 42 weeks ending 20 July 2024.

Growth in the third quarter reflected the movement of Easter into M&B’s fiscal first half this year combined with a progressive easing of the inflationary environment, through a period of fairly wet weather.

The current run rate of like-for-like sales growth over the most recent 13-week period to exclude Easter in both years is 4.2%.

Also, during this period, the business, which has brands including Nicholson’s, All Bar One and Toby Carvery, reported having completed 139 conversions and remodels, as well as opened six new sites.

Ahead of the market

This was in addition to the continued roll out of a number of initiatives to help reduce energy usage including installing solar panels and sensors.

Looking ahead, M&B has anticipated net cost headwinds of £55m this financial year with hikes in labour costs due to the rise of the national living wage.

This will be partly mitigated by deflation in energy costs, slowing food cost inflation and strong cost control at site level.

Coupled with a robust sales performance, the company expects to continue to rebuild margins and remained very confident in the delivery of full year consensus expectations.

Chief executive Phil Urban said: “We are pleased with the continued trading performance, which has remained ahead of the market 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."

Profit levels benefit

He added: “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 success 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.”

Last month (June), M&B reopened three London pubs​ after an “extensive” six-figure renovation project.

Meanwhile in May, it announced the acquisition of the 10-strong north-west and Midlands Italian small plates firm Pesto Restaurants​.