FOOD sales have outstripped drink revenues in the retained estate of Birmingham-based pub operator Mitchells and Butlers for the first time.
According to its half-year results for the 28 weeks ended April 9, 2011, food sales were up year-on-year by 7.5% and all sales were up 4.2%.
Revenues have climbed from £875m to £912m, EBITDA has risen slightly from £192m to £194m and operating profit has remained stagnant at £136m.
The results relate to its retained estate following a concerted disposal strategy to focus on its food operations, which has seen several ‘wet-led’ divisions of the company being off loaded during the past year.
However, its overall H1 2011 results including these non-core pubs, show a fall in revenue from £1.03bn to £946m and a drop in operating profit from £156m to 141m. Pre-tax profit is also down by £10m to £63m.
Today’s report says £53m of expansionary capital has been invested, including in 29 new openings and 31 conversions, while 19% EBITDA returns have been achieved on expansionary capital invested in FY10 and FY11. Net debt has been reduced by nearly £400m, it adds.
Interim chief executive Jeremy Blood said: “Our growth strategy is on track and has delivered a strong trading performance with total sales up 4.2%.
“Harvester’s performance has been particularly good. We have successfully positioned M&B more firmly within the eating-out market with nearly three quarters of our revenue now generated around eating-out.
“We have a healthy balance sheet and are investing for further growth with 50 new sites being opened this year from our brand roll-out.”
