Mitchells & Butlers: Drink sales help Toby Carvery and All Bar One owner achieve another record period
All Bar One owner Mitchells & Butlers said its continuing to rebuild its margins as it reports yet another period of sales growth.
The no frills dining and pub chain, which also owns Toby Carvery, saw its like-for-like sales increase by 3.4 per cent over the past three months, bringing its total sales increase for the year to 7.3 per cent.
Sales of drinks contributed significantly to this, growing by four per cent during the company’s third quarter.
London-listed Mitchells & Butlers, which has over 1,000 sites across the UK, said sales growth had “remained ahead of the market” with growth across its entire brand portfolio.
Phil Urban, chief executive, said: “We are pleased with the continued strong trading performance, which has remained ahead of the market through the year.
“As inflationary pressures have eased the level of price increase we have taken has reduced, leading to headline sales growth in line with more normalised levels as expected during the second half.
“The combination of easing inflationary costs and continued sales growth will ultimately benefit our profit levels for the year.
“Our focus remains on the effective execution of our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales.
“With the unique strengths of our business, including a diverse portfolio of established brands, value proposition and enviable estate locations, we are well positioned to continue to grow profitability and market share into next year.”
Looking forward Mitchells & Butler said it was anticipating net cost headwinds in the region of £55m during the current financial year, with increases in labour costs due to the statutory National Living Wage rise mitigated in part by deflation in its food and energy costs.
The pubs group had a record 12 months in 2023, with total revenue reaching £2.5bn, up from £2.2bn in the same period last year. Operating profit however was down £26m to £98m.