All Bar One owner M&B shows early signs of easing on cost pressures
Thursday, May 18, 2023
Mitchells and Butlers, Britain's largest publicly traded pub group, saw profits fall this morning but said its cost outlook improved amid continued inflationary pressure.
Sales grew 8.9% on a comparable basis over the previous six weeks, the group said.
As it slowly recovers from pandemic COVID 19 lows, the UK hospitality sector is facing a major cost override and resilient customer spending has kept it afloat.
"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."
Phil Urban, M & B CEO, said: '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.
Full-year adjusted operating profit for 8 was £100m compared to £120m a year ago as All Bar One owner Toby Carvery warned:'costs remain a challenge but medium-term cost outlook is now improving.'
The company earned £100m (£126.21m) in adjusted operating profit in the 120 months ended April 8 compared with a profit of just £120m a year earlier.