Mitchells & Butlers posts 'record outperformance' against the market

The group, which operates the likes of All Bar One, Browns, Harvester and Toby Carvery, saw 'record outperformance' against the market as measured by CGA Business Tracker, with total revenue rising to £2,503m from £2,208m the year before.

However, the group's operating profit dipped from £124m to £98m as a result of property portfolio valuation movements and £52m provided in Government support in the form of reduced VAT and grants the previous year. 

Adjusted operating profit increased 17.6% net of Government support.

Overall, M&B reported a pre-tax loss for the period of £13m (2022: loss of £8m). 

“We are delighted by the continued strength of our trading performance, and resilience in the face of unprecedented cost headwinds,” says Phil Urban, chief executive of M&B.

“We have achieved good growth in underlying profit, excluding government support, with like-for-like sales growth across all of our brands, and record outperformance against the market. Whilst we remain mindful of the pressures that the UK consumer is facing, the strength of our sales growth alongside an abating cost environment gives us confidence for the financial year ahead.”

M&B notes that cost headwinds are starting to abate with overall headwinds for the year ahead expected to reduce to c.£65m due to lower energy prices and slowing food inflation.

Elsewhere, the group says its acquisition of the 29-strong Ego Restaurants brand in June this year​​ will 'provide synergy and rollout opportunities' with scope for between 20-30 conversions using the Ego format over the next three to five years.

“We will remain focused on our strategic priorities delivered through our Ignite and capital programmes, which combined with our diverse portfolio of well-known brands, strong estate locations and talented people, leave us well positioned to rebuild margins back towards pre-pandemic levels,” Urban adds.