M&B posts 5.2% lfl sales boost for 51-week period

26-Sep-2024 - Last updated on 26-Sep-2024 at 08:32 GMT

Sales boost: M&B expects certain pressures to ease in future

Pubs, bars and restaurants operator Mitchells & Butlers (M&B) has reported like-for-like sales growth of 5.2% in its current financial year to date with all brands in growth.

M&B, which operates brands including All Bar One, Nicholson’s and Sizzling Pubs, said the rate of growth in the fourth quarter continues to reflect a progressive easing of the inflationary environment, as well as an unseasonally cool and wet summer period and the disruption caused by riots in city centres during August.

The announcement was made as the business issued a trading statement covering the 51 weeks ended 21 September 2024.

Like-for-like (lfl) sales have risen during each period of its past financial year with weeks 1 to 15 enjoying a 7.7% lift (8.7% in food and 6.6% in drinks), a 6.1 % boost in weeks 16 to 28 (6.6% food, 5.3% drinks), 3.4% lfl sales boost in weeks 29 to 42 (2.6% food, 4.0% drinks) and a 2.5% lift in weeks 43 to 51 (2.0% food, 3.0% drinks) – resulting in an overall lfl sales lift of 5.2% for the year to date (5.3% food, 4.9% drinks).

185 conversions

Meanwhile, total sales in the year to date have increased by 5.9%.

The business said it continues to focus on investment in the estate and in the year to date, it has completed 185 conversions and remodels and 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.

It expects net cost headwinds will reduce to c£55m this financial year with increases in labour costs substantially mitigated by deflation in our energy costs, but also slowing food cost inflation and strong cost control at site level.

Outperformance against market

M&B stated: “Coupled with a robust sales performance, ahead of the market, we remain confident in the delivery of a full year result at the upper end of consensus expectations.”

M&B chief executive Phil Urban said: “Sales growth has continued to normalise as inflationary cost pressures ease while our diverse portfolio of established brands and advantaged estate locations underpin our outperformance against the market.

“We enter the new financial year armed with a fresh wave of initiatives under our Ignite programme and a full capital investment programme planned to deliver cost efficiencies, increased sales and to further drive market out-performance and increasing profitability.”

The business’s current financial year will be a 52-week accounting year to 28 September 2024.