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M&B pushes forward with capital investment plan in the face of inflationary cost pressures

Mitchells & Butlers

Mitchells & Butlers has posted its quarterly trading statement for the 42 weeks ended 16 July 2022, with its chief executive outlining “major challenges” impacting the business – including inflationary cost pressures. 

Sales comparisons are on a three-year basis, to the same period in 2019 – the last full financial year before Covid-19.

Like-for-like sales started the third quarter strongly, up 2.2% for the first five weeks as previously reported, before falling back slightly across a period including the Jubilee weekend, industrial action and the recent very hot weather, to end up 0.9% across the full quarter, with food continuing to be the main driver.

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Total sales declined by 1.6% in the year-to-date driven mainly by temporary covid-related closures in the first part of the year and site disposals since 2019.

The pub group, which owns brands including Harvester, Toby Carvery, All Bar One and Miller & Carter, forecasts that in the case of utilities, wages and food costs, these will persist at or above current levels well into the next financial year – increasing and prolonging the medium term impact on margins. 

However, despite these challenging conditions, the company has said it remains committed to investing in enhancing the competitiveness of its estate – having completed 116 conversions and remodels in the financial year to date.

Chief executive Phil Urban commented: “The trading environment remains very challenging with inflationary costs squeezing consumer discretionary spending and putting pressure on the industry’s margins.

In the face of these challenges, we remain focused on driving sales and efficiency through our Ignite programme and pushing forward with our capital investment plan which we are pleased to see delivering strong sales uplifts.”

Mitchells & Butlers calls time on gas kitchens

Tags : financial statementinflationpub operator
Maria Bracken

The author Maria Bracken

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