(For the 28 weeks ended 8 April 2023)

Highlights

  • Strong like-for-like salesa growth of 8.5% versus HY 2022, built on volume growth in both food and drink
  • Costs remain a challenge but medium-term cost outlook is now improving
  • Capital investment and Ignite programme continue to drive sales growth and cost efficiencies

Reported results

  • Total revenue of £1,282m (HY 2022 £1,159m)
  • Operating profit of £99m (HY 2022 £121m)
  • Profit before tax of £40m (HY 2022 £57m)
  • Basic earnings per share of 5.4p (HY 2022 7.7p)

Trading results

  • Adjusted operating profita £100m (HY 2022 £120m)
  • Adjusted earnings per sharea 5.5p (HY 2022 7.6p)

Balance sheet and cash flow

  • Cash inflow before bond amortisation of £10m (HY 2022 inflow £22m)
  • Cash balances on hand of £142m at half year end (HY 2022 £194m) with undrawn unsecured committed financing facilities of £150m to February 2024
  • Net debta reduced to £1,193m (HY 2022 £1,253m), excluding £467m of IFRS 16 lease liabilities (HY 2022 £483m)

Phil Urban, Chief Executive, commented:

“We are pleased to report a strong first half performance delivering continued like-for-like salesa growth and outperformanceb 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, including the most recent six weeks at 8.9% like-for-like salesa growth, and also by early signs of the medium-term cost outlook improving.

We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. Combined with our diverse portfolio of established brands, value proposition, enviable estate locations and talented people, we believe we are well positioned to continue to outperform the sectorb.

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.

b – As measured by the Coffer Peach Business Tracker.

There will be a presentation held today at 9:00am accessible by phone on 020 3936 2999, access code: 388030 and at https://www.netroadshow.com/events/login?show=b62bae44&confId=50883 The slides will also be available on the website at www.mbplc.com The replay will then be available at http://www.mbplc.com/hy2023/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
George Kitchen – Investor Relations
+44(0)121 498 6514
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.