All Bar One owner still feeling the pinch from inflation
Mitchells and Butlers, the UK’s largest listed pub group, saw a drop in profits this morning, but said that its cost outlook was improving amid ongoing inflationary pressure.
The All Bar One and Toby Carvery owner made £100m in adjusted operating profit for the half year ending on April 8, down from £120m a year ago, stating that “costs remain a challenge but medium-term cost outlook is now improving.”
The company said it saw like-for like sales growth up 8.5 per cent on a year ago, building on volume growth in both food and drink.
Phil Urban, Chief Executive, said: “The trading environment for the hospitality sector remains challenging with inflationary costs putting pressure both on the industry’s margins and disposable income of our guests.”
Rising costs have continued to pose exceptional challenges for the UK hospitality sector, which is still licking its wounds from the lows of the pandemic.
Energy costs in particular have hurt M&B, with the group warning in September last year that it expected its energy expenses to hit double pre-pandemic levels. Trade has also been hit by ongoing rail strike action.
Urban added: “we are encouraged by the resilience of trade to date, including the most recent six weeks at 8.9% like-for-like sales growth, and also by early signs of the medium-term cost outlook improving.”
“We are well positioned to continue to outperform the sector.”
Yesterday Marston’s reported there had been “little change” in the willingness of Brits to spend on a night out.