Sales growth at Mitchells & Butlers has remained ahead of the market through the fourth quarter, with like-for-like sales growth of 5.2% in the year to date.
In a trading statement covering the 51 weeks to 21st September, the company said the rate of growth in the fourth quarter continued to reflect a progressive easing of the inflationary environment. But factors to consider were an unseasonally cool and wet summer period and disruption caused by riots in city centres during August.
The company continues to focus on investment in the estate, and in the year to date has completed 185 conversions and remodels. It has opened six new sites, in addition to the continued rollout of a number of initiatives to reduce energy usage, such as solar panels and sensors.
Net cost headwinds will reduce to some £55m this financial year, with increases in labour costs substantially mitigated by deflation in energy costs, There is also slowing food cost inflation and strong cost control at site level.
Coupled with a robust sales performance, ahead of the market, the business remains confident in the delivery of a full-year result at the upper end of expectations.
“Sales growth has continued to normalise as inflationary cost pressures ease, whilst our diverse portfolio of established brands and advantaged estate locations underpin our outperformance against the market,” said Mitchells & Butlers chief executive Phil Urban.
“We enter the new financial year armed with a fresh wave of initiatives under our Ignite programme, and a full capital investment programme planned to deliver cost efficiencies, increased sales, and to further drive market out-performance and increasing profitability.”
