Mitchells & Butlers- sales figures ‘encouraging' despite ‘challenging market’

Phil Urban
21/09/2017 - 09:42
Mitchells & Butlers has announced its latest financial results which the pub and restaurant operator says have been affected by a more challenging market in recent weeks.

Like-for-like sales were up 2.9% for the year-to-date, with the change in weather over the summer  said to have impacted on results, especially in wet sales.

Lfl sales for the 51 weeks to 16 September 2017 were up 2.1% in drink, 1.4% in food and 1.8% in total.

The figures drop for the last eight weeks with drink sales dropping -1.2% while food sales rose 1.5% resulting in an overall rise of 0.3%.

Drink sales were particularly strong in the ten weeks to 22 July during a spell of especially warm weather, rising 3.8%, contributing to an overall growth of 2.6% for the period.

Chief executive, Phil Urban, said: "While the weather in August and September has adversely affected the market we remain encouraged that our like-for-like sales performance continues to outperform the market.

“This performance reflects the progress we have made towards our strategic priorities. We continue to work hard to mitigate the cost headwinds faced by the industry and expect to deliver a full year performance in line with the board's expectations.

“We will enter the new financial year with the momentum of solid sales growth, enhanced clarity on pension contributions and a clear strategy which we believe positions the company well to deliver long term shareholder value."

The group has opened 13 sites in the year to date and has undertaken 236 conversions and remodels.

It disposed of 79 sites, which Urban said did not fit into its long-term estate plan, 73 of which were sold as a package with the remainder sold individually.

“The proceeds from disposals total £46m which is marginally above the net book value of the properties,” said Urban.

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