Mitchells & Butlers PLC (LSE:MAB) has opened the new financial year in solid shape, with the pub and restaurant group reporting like-for-like sales growth of 3.8% in the first eight weeks and signalling confidence about its ability to handle what it expects will be tougher cost pressures across the sector.
Phil Urban, the company’s chief executive, said: “As we look to the year ahead, we anticipate increased cost pressures across the sector. However, we remain confident in our ability to manage these challenges through our established Ignite improvement programme and disciplined capital investment strategy.
"Our market-leading estate and diversified guest propositions provide a strong foundation for resilience and growth, enabling us to capture incremental market share and deliver continued long-term outperformance.”
The upbeat outlook followed a full year in which the group continued to trade ahead of the broader market. Like-for-like sales, a measure that strips out the impact of openings and closures, grew by 4.3% over the 52 weeks to 27 September.
The pub group, which owns the Vintage Inns chain and Miller & Carter steakhouses, said it saw “strong performances across all market segments”.
Adjusted operating profit rose 5.8% to £330 million, while adjusted operating margin edged up to 12.2%, compared with 12.0% last year. Total revenue reached £2,711 million, an increase from £2,610 million in 2024.
Statutory operating profit was £322 million and profit before tax rose to £238 million, up from £199 million. Basic earnings per share were 29.7 pence, compared with 25.0 pence a year earlier.
The company continued to generate healthy cash flow. Net debt, excluding lease liabilities, fell to £843 million, down from £989 million. Net asset value increased to 476 pence per share, from 433 pence last year.
MAB also reported that its pension surplus was being used to offset defined contribution pension payments, which it said was equivalent to about £10 million a year.
The group said its accelerated capital programme was delivering strong returns and that it had achieved record scores across guest satisfaction, employee engagement and safety.
Urban said: “We are pleased to report another year of strong performance. Like-for-like sales continued to outperform the market across all segments, reinforcing the strength of our strategy and market positioning.
Combined with disciplined operational execution, this delivered robust profit growth, mitigating sector-wide cost headwinds.”
The group, which runs more than 1,700 pubs, bars and restaurants, has been focused on improving its estate and tightening cost control as the industry grapples with higher energy bills, wage costs and food-price inflation.