Interim Management Statement - July 2010
Like-for-like sales in the first 42 weeks of the financial year have increased by 1.6% with total sales up 2.1%. Like-for-like sales rose by 1.2% in the most recent nine weeks since we last reported. The month of the World Cup had a negative impact on food sales reducing overall like-for-like sales by approximately 2.0%, indicating an estimated underlying growth rate of 3.2% in the nine week period.
|Like-for-like sales||H1 2010
33 weeks to 15 May 2010
9 weeks to 17 July 2010
42 weeks to 17 July 2010
|Note: total like-for-like sales include other non food and drink categories|
The Retail operating margin continues to improve with third quarter margins being slightly ahead of the same period last year.
The Company’s financial position is robust. Net debt continues to reduce, with drawings on the unsecured medium term facility at £291m excluding the £88m of proceeds from the recent disposal of 52 lodges.
There continues to be uncertainty in the outlook for discretionary expenditure and associated pressure on the UK’s eating and drinking out market. However, our core brands’ effective marketing and value positioning have generated increases in sales and profitability this year and form a strong platform for future growth. We are making good progress towards achieving the objectives laid out in our strategic plans and are confident in the future prospects of the business.
There will be a conference call for analysts and investors at 9.00am; please dial +44 (0) 1452 555 566 and quote conf ID 89539517. The replay will be available until 04/08/10 on +44 (0) 1452 55 00 00, replay access number 89539517#.
For further information, please contact:
|Erik Castenskiold||0121 498 6513|
|James Murgatroyd (Finsbury Group)||0207 251 3801|
Notes for editors:
- Mitchells & Butlers' leading portfolio of brands and formats includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pub Co., Browns, Miller & Carter, Metro Professionals, All Bar One, Nicholson's and O'Neill's. Further details are available on www.mbplc.com .
- Mitchells & Butlers serves around 130 million meals and 575 million drinks each year and is one of the largest operators within the UK’s £70 billion eating and drinking out market.
- Like-for-like sales growth includes the sales performance against the comparable period in the prior year of all managed pubs that were trading in the two periods being compared. For the 9 weeks to 17 July 2010 96% of the estate is included in this measure.