Mitchells and Butlers sees profits dip to £98m in FY 2023
The group also stated that its like-for-like sales rose 7.2% in the new fiscal year that started on 1 October
Restaurant group Mitchells and Butlers has revealed that its operating profits dropped from £124m to £98m for the 53 weeks ending 30 September, driven by weaker property valuations and increased costs, which also included higher wage bills.
However, the group’s sales increased to £2.5bn, up from £2.2bn last year, with like-for-like growth of 9.1%.
The group also stated that its like-for-like sales rose 7.2% in the new fiscal year that started on 1 October.
Though cost headwinds presented a significant challenge in FY 2023, the hospitality chain said these pressures are starting to abate amid an ease in food and energy inflation.
It said it has “confidence for future trading” due to stable volumes but “is very mindful of the potential implications of the cost-of-living challenge facing guests”.
Phil Urban, chief executive, said: “We are delighted by the continued strength of our trading performance, and resilience in the face of unprecedented cost headwinds. We have achieved good growth in underlying profit, excluding government support, with like-for-like sales growth across all of our brands, and record outperformance against the market.
“Whilst we remain mindful of the pressures that the UK consumer is facing, the strength of our sales growth alongside an abating cost environment gives us confidence for the financial year ahead. We will remain focused on our strategic priorities delivered through our Ignite and capital programmes, which combined with our diverse portfolio of well-known brands, strong estate locations and talented people, leave us well positioned to rebuild margins back towards pre-pandemic levels.”
