Mitchells & Butlers 8-week Sales Up, Margin Weak; FY Results Inline With View

(RTTNews) - Mitchells & Butlers Plc. (MAB.L, MLB), an operator of managed restaurants and pubs, Thursday reported that its like-for-like sales growth in the 8 weeks to September 22 was 2.2% on a calendar basis.

On a reporting basis, like-for-like sales growth was 0.8% in the past 8 weeks, and 1.2% in the year to date. Total sales have increased by 0.5% in the year to date impacted by the disposals in the prior year.

In its pre-close trading update, the company noted that sales have strengthened since its last update on August 2. The period has also seen a more normalised split between drink and food sales following a period of very strong drink growth over the summer.

Cost headwinds remain largely unchanged and, as previously advised, are expected to lead to margins being lower than last year.

Phil Urban, Chief Executive, said, "We are building momentum as a result of our focus on our strategic priorities and are seeing encouraging results from the second wave of transformation activity. Work continues to mitigate the cost headwinds impacting the industry and we remain confident of delivering full year results in line with the Board's expectations."