Mitchells and Butlers swings to FY profit as sales hit £2.6bn
A strong period of cash generation also drove a £197m reduction in Mitchells and Butlers’ debt, including leases
Mitchells and Butlers has risen to a profit of £19m in its full-year results, up from a previous loss of £13m, following a strong trading performance over the year.
It comes as total revenues hit £2.6bn in the year ended 28 September, up from £2.5bn the prior year, with like-for-like sales growing by 5.3%.
Operating profits also rose 41.2% to £312m, and as a result, the pub group’s operating margin at year’s end stood at 12%, rising from 9% reported a year earlier.
During the year, the pub group managed to reduce its net debt to £989m from £1.1bn a year earlier, excluding £447m of IFRS 16 lease liabilities.
Post year-end, Mitchells and Butlers has reported a strong start to FY25, as like-for-like sales rose 4% in the first seven weeks.
Phil Urban, CEO of Mitchells and Butlers, said: “We are delighted by the very strong performance during the year. Like-for-like sales continued to outperform the market which, coupled with easing inflationary costs and focus on efficiencies, has resulted in very strong profit recovery.
“We face increased inflationary cost headwinds in the year ahead. However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales.”
He added: “Coupled with our market-leading estate and customer offers, we are confident that this will enable us to further grow market share and secure continued long-term outperformance.”