Mitchells & Butlers: Profit at All Bar One owner jumps as Brits keep spending
All Bar One owner Mitchells & Butlers has reported half-year profit ahead of the market despite significant cost headwinds.
The All Bar One and Harvester owner told markets this morning that total revenue reached £1,454m in the 28 weeks ended April 12, up four per cent year on year.
Operating profit rose 10 per cent to £181m, while profit before tax rose 24 per cent to £134m.
Chief Phil Urban said Mitchells’ performance was driven by cost efficiencies and a focus on “maximising the guest appeal” of its many brands.
It outperformed the wider market by over three per cent in the first half of the year, driven by growth in restaurant sales.
The company’s performance follows a string of better-than-expected trading results for Britain’s major pub chains.
All Bar One owner looks to cut costs
Although Greene King has struggled this year, other major chains have successfully fended off the costs-driven hospitality crisis predicted after Labour’s Autumn budget year.
Pub chain Marstons reported a 20 per cent uptick in half-year profit to £60.3m, while JD Wetherspoon told markets like-for-like sales have increased 4.2 per cent since the start of 2025.
While Mitchells & Butlers took a £100m hit from higher national insurance contributions and the higher minimum wage – equivalent to around five per cent of its cost base – it said the business “remains in good shape”.
The company expects costs to increase further next year due to the annualisation of labour cost increases, plus increases in food costs, notably meat.
“As we enter the second half of the year, with increased employer national insurance contributions, we remain focused on… driving further cost efficiencies and increased sales,” Urban said.
“Notwithstanding a likely increase in cost headwinds next year, we have confidence that relentless focus on delivery of our strategic priorities will generate further value from our well invested and strategically located estate portfolio and compelling customer offers,” he added.
Mitchells & Butlers expects to deliver profits at the top end of consensus for the current year.