The group – which operates brands including Nicholson’s, O’Neill’s, All Bar One and Ember Inns – reported its adjusted operating profit had risen by 41% from £221m in 2023 to £312m in 2024.
Meanwhile, like-for-like (lfl) sales have grow by 5.3% throughout the financial year (FY24) with food sales up 5.3% and drink up 4.9%.
Revenue rose by 6.1% to reach £2.61bn (£2.46bn: 2023) and profit before tax lifted from £112m in 2023 to £211m.
Inflation easing
On current trade and the future, the business said sales growth remained strong over FY24, with consistent market outperformance.
Moving into FY25, it expects more normalised levels of sales growth as the inflationary environment eases. The current underlying run rate of lfl sales growth, as measured across the first seven weeks of the new financial year, is 4.0%.
Cost headwinds are now anticipated to total c.£100m this financial year, an increase of just over 5% on its current cost base.
Against a benign backdrop of general inflation (including food and drink inputs), the most significant increase is now expected in relation to labour costs due to increases in the national living wage and in employer national insurance contributions, both of which take effect from April 2025.
The group anticipates energy costs this year, of which just over one half have been bought forward, will broadly stabilise overall with no further deflation, as has been seen in FY24.
Market share growth expected
It concluded: “Notwithstanding future cost increases we feel that the business is in very good shape. Our balance sheet continues to strengthen, with reduced debt and a substantially de-risked pension surplus, and we expect to outperform the market driving further profit growth in the year ahead.”
M&B CEO Phil Urban added: “We are delighted by the very strong performance during the year. Like-for-like sales continued to outperform the market, which, coupled with easing inflationary costs and focus on efficiencies, has resulted in very strong profit recovery.
“We face increased inflationary cost headwinds in the year ahead. However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales.
“Coupled with our market-leading estate and customer offers, we are confident that this will enable us to further grow market share and secure continued long-term outperformance.”
