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18/05/2022

Half Year Results 2022

Mitchells & Butlers company news

(For the 28 weeks ended 9 April 2022)

Highlights

  • Like-for-likea sales growth of 1.0% over the first half versus FY 2019 (pre Covid-19)
  • Encouraging progress in like-for-likea sales growth of 3.8% versus FY 2019 through the second quarter
  • Challenging cost environment partially mitigated through capital and Ignite programmes
  • Commitment to reducing the environmental impact of the business with updated targets

Reported results

  • Total revenue of £1,159m (HY 2021 £219m)
  • Operating profit of £121m (HY 2021 £(132)m loss)
  • Profit before tax of £57m (HY 2021 £(200)m loss)
  • Basic earnings per share of 7.7p (HY 2021 (33.0)p loss)

Trading results

  • Adjusted operating profita £120m (HY 2021 £(124)m loss)
  • Adjusted earnings per sharea 7.6p (HY 2021 (31.8)p loss)

Balance sheet and cash flow

  • Cash inflow before bond amortisation of £22m (HY 2021 inflow £35m)
  • Net debta reduced to £1,253m (HY 2021 £1,472m), excluding £483m of IFRS 16 lease liabilities (HY 2021 £541m)

Phil Urban, Chief Executive, commented:

"We are encouraged by the improvement in sales trajectory through the first half of the year, having made progress in each of our markets, with our food-led businesses continuing to lead the way.

The trading environment remains difficult. Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages and food. In light of this, our teams have refocused their efforts on driving further efficiency and productivity gains through our Ignite programme. In parallel, we are pushing forward with our capital investment plan which we are pleased to see delivering strong sales uplifts.

The fundamental strengths of the business remain, and we are well positioned to continue on our trajectory of recovery following the pandemic."

Definitions

a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. APMs are explained later in this announcement. All sales measures are compared to FY 2019, being the last full year pre-Covid-19.

There will be a presentation held today at 9:30am accessible by phone on 020 3936 2999, access code: 040690 and www.incommuk.com/customers/online access code: 040690. The slides will also be available on the website at www.mbplc.com. The replay will then be available at www.mbplc.com/hy2022/analystspresentation.

All disclosed documents relating to these results are available on the Group's website at www.mbplc.com.

For further information, please contact:

Tim Jones - Chief Financial Officer+44(0)121 498 6112
Amy De Marsac - Investor Relations+44(0) 7712 538660
James Murgatroyd (Finsbury)+44(0)20 7251 3801

Note for editors:

Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson's, O'Neill's and Ember Inns. In addition, it operates Innkeeper's Collection hotels in the UK and Alex restaurants and bars in Germany. Further details are available at www.mbplc.com and supporting photography can be downloaded at www.mbplc.com/imagelibrary.

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