- Strong Christmas trading against easy comps
- Continued like-for-like growth
- Focus on driving cost efficiencies
Pubs group Mitchell’s & Butlers (MAB) saw strong trading over Christmas with like-for-like sales up 19% as they lapped the prior Covid-impacted period
Against a more meaningful pre-pandemic comparison in 2019, like-for-like sales grew 8.5% in the last five weeks to 7 January despite the disruption of travel strikes.
Investors cheered the positive start to the year with the shares gaining 5% to 170.9p. Since their lows in October the shares have gained 56% but remain well below pre-pandemic trading levels of 400p.
For the first 15 weeks of the new financial year (24 Sep), sales are up 13.3% with 10.4% like-for-like growth driven by drinks which grew 15.5%.
Chief executive Phil Urban commented: ‘We are encouraged by a strong performance through the first quarter and delighted to have been able to welcome our guests back over the festive trading season after three years of disruption due to Covid 19, setting sales records as we did so.
‘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 and enviable estate locations, we believe we are well positioned to meet the challenges of the year ahead.’
WHAT ARE THE FIRM’S PRIORITIES?
The Ignite programme involves around 40 initiatives but a key focus near-term is to enhance efficiency and productivity to mitigate cost headwinds.
The core business proposition is to provide guests with value for money, protecting entry level items and introducing premium items to provide trade-up options.
Another key focus is investing into the estate and year-to-date the company said it had completed 43 conversions and remodels as well as opening a new All Bar One at Edinburgh airport.
These investments are designed to improve the competitive position of the pubs and restaurants in their local markets. Mitchell’s & Butlers operates a diverse portfolio of brands and formats including All Bar One, Harvester, Miller & Carter and O’Neils.
