Sales growing but cost pressures remain for pub giant

Sales at pub group Mitchells & Butler continue to be “encouraging” although margins remain squeezed.

The Birmingham-based group, which owns a long list of brands including Harvester, Toby Carvery, All Bar One and Nicholson’s, has reported sales growth ahead of the sector average.

Mitchells & Butler chief executive Phil Urban said: “Sales performance since the half year has been encouraging, with strengthening like-for-likes helped by the sunny weather and continued outperformance to the market.”

Like-for-like sales in the 10 weeks to July 22 were up 2.6%, accelerating the 1.9% growth seen in the first 33 weeks of the financial year.

However Urban reiterated the pressures the group – and the sector – face in maintaining margins, which are expected to be lower than last year.

“The cost headwinds we face remain challenging,” he said. “However, we are working hard to mitigate these where we can and we are confident that continued focus on the three strategic priority areas we have identified will help us to deliver a performance for the full year in line with the Board’s expectations and will generate long term sustainable shareholder value.”