Mitchells & Butlers H1 Pre-Tax Profit Flat, Food Sales Volume Grows

(RTTNews) - Pubs and restaurants operator Mitchells & Butlers Plc. (MAB.L, MLB) Thursday reported a first-half profit unchanged from the prior year, even as Easter fell in the first half last year. Further, the company said food sales returned to volume growth during the period.

Alistair Darby, chief executive, said, "We are pleased with our trading performance in this first half, particularly the turnaround in volumes, alongside which we have made good progress against our key priorities, and continued to position Mitchells & Butlers for sustainable long-term future growth.''

Pretax profit was 68 million pounds for the 28 weeks ended April 12, flat with prior year. Prior-year results have been restated.

Excluding items and other adjustments, pretax profit increased to 77 million pounds from 74 million pounds.

Profit for the period decreased to 53 million pounds from 55 million pounds. Earnings per share was 12.8 pence, compared to 13.4 pence last year.

Revenue rose to 1.02 billion pounds from 991 million pounds. According to the company, revenue growth of 2.5 percent stemmed from growth in like-for-like sales as well as the contribution from new pubs and restaurants.

Food sales grew 2.7 percent and drink sales advanced 2.2 percent.

Total like-for-like sales grew 1.1 percent, with growth from both food and drink sales on price increases. Noting that Easter fell in the first half of last year, the company said like-for-like sales increase slowed in the latter part of the period.

Food sales returned to volume growth of 0.2 percent during the period, while Drink volumes declined 0.3 percent.

The company has now reached agreement on the triennial valuation of the group pension schemes as at March 31, 2013. Due to lower real gilt rates and an increase in assumed longevity the funding shortfall as at the valuation date has increased to 572 million pounds from 400 million pounds for the March 2010 valuation.

Mitchells & Butlers said that following the agreement of the 2013 triennial pensions valuation and related recovery plan, its Board would assess a return to paying dividends in the light of the full year trading and cash flow generation.

MAB.L fell 2.1 percent in early morning trade at 418.00 pence.