Mitchell and Butlers revenues hit £1.2bn in H1
The group’s net debt also reduced to £1.1bn compared with £1.2bn in H122, excluding £467m of IFRS 16 lease liabilities
Mitchell and Butlers’ total revenues reached £1.2bn in the 28 weeks ended 8 April, compared with £1.1bn in the same period last year, as the group’s like-for-like sales grew 8.5%.
However, the group’s operating profit reached £99m for the period compared with £121m in HY22 and its profit before tax totalled £40m instead of a previously recorded £57m.
This comes as costs remain a challenge for the pub group, but medium-term cost outlook is now improving.
As a result, the group had cash balances on hand of £142m at half year end compared with £194m in HY22, with undrawn unsecured committed financing facilities of £150m to February 2024.
Nevertheless, its net debt still reduced to £1.1bn compared with £1.2bn in H122, excluding £467m of IFRS 16 lease liabilities.
Phil Urban, CEO of Mitchell and Butlers, said: “We are pleased to report a strong first half performance delivering continued like-for-like sales growth and outperformance against the market.
“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. However, we are encouraged by the resilience of trade to date and also by early signs of the medium-term cost outlook improving.”