Mitchells & Butlers: All Bar One owner toasts ‘record year’ despite battling high costs
All Bar One owner Mitchells and Butlers (M&B) said that like for like sales grew to a record 9.1 per cent during the full year, as the chain toasts a strong performance.
The no frills dining and pub chain, which also owns Toby Carvery, said that adjusted operating profit increased by 17.6 per cent, despite facing increasing costs due to high inflation.
The group which has over 1,000 sites across the UK was also bolstered by the acquisition of Ego Restaurants, with plans for around 20-30 conversions using the Ego format over the next three to five years.
Total revenue reached £2.5bn during the year up from £2.2bn in the same period last year, however operating profit was down £26m to £98m.
M&B blamed an end to government support measures and the cost of property portfolio valuation movements.
The firm said: “Cost headwinds presented a significant challenge in FY 2023 but we are seeing clear evidence that these are starting to abate.”
“We now know that the National Living Wage will increase by 9.8 per cent, and be extended to everyone over 21, from April next year, but a reduction in energy prices and slowing food inflation, in particular, mean that anticipated overall cost headwinds for the year ahead are expected to reduce to c.£65m.
“This should allow us to start to rebuild margins back towards pre-pandemic levels.”