M&B cheered by strong festive trading
BIRMINGHAM-based pubco Mitchells & Butlers has said its performance has benefited from a strong festive period.
In a statement ahead of today’s AGM, the firm said year to date sales had increased by 9.1%, with like-for-like sales growth of 1.7%.
The festive period saw a good trading performance, with like-for-like sales growth of 4.8% in the two weeks of Christmas and New Year. Trading was especially strong on key dates, and in particular Christmas Day, which saw like-for-like sales growth of 7.1% and more than 200,000 meals sold.
Alistair Darby, Chief Executive, said: “We are pleased to have delivered a good trading performance over the important festive season. As we now move into the more difficult winter trading period we continue our focus on growing our business through increased volumes, upgrading infrastructure and further improving staff turnover and net promoter scores. The Orchid integration plan is on track and we are encouraged by the early trading performance of the converted sites.”
The higher level of overall sales is supported by growth in food volumes (2.8% for the 17 weeks to January 24 and 0.7% for the 52 weeks as whole) and drink (0.4% in the 17-week period and 0.5% for the year as a whole).
The firm said margins continued to be weaker than last year due to a number of factors including the planned integration of the Orchid business and the careful approach which we have adopted to pricing in a demanding consumer environment.
In terms of investment, M&B said it had acquired four sites and converted 15 in the financial year to date, including the first six conversions of Orchid sites to its existing brands and formats. It said it remained on track with the integration of the Orchid business.
The investment into the EPOS system is said to be progressing on schedule, with more than 1,400 pubs now live and the project due to complete this financial year.
