Mitchells and Butlers LFL sales rise 3.4% in Q3

The operator of All Bar One and Toby Carvery, Mitchells and Butlers, has reported that like-for-like sales rose 3.4% during the third quarter to 20 July, as sales remained ahead of the market despite the generally wet weather. 

Following a “very” strong start to the year, the group’s Q3 growth rate reflected the movement of Easter into the first half of the year, coupled with an easing of the inflationary environment as anticipated. 

Like-for-like revenues also rose 5.7% in the 42-week period, with M&B maintaining that all of its brands are growing. 

The current run rate of like-for-like sales growth over the most recent 13 weeks (excluding Easter in both years) is 4.2%, with total sales in the year-to-date having increased by 7.3%.

M&B has also revealed that it completed 139 conversions and remodels, and has opened six new sites in addition to the continued rollout of solar panels and sensors, in the year-to-date.

Looking ahead, the group anticipates net costs headwinds in the region of £55m this financial year, with increases in labour costs due to the National Living Wage rise to mitigate in part by deflation in its energy costs. 

Phil Urban, CEO of Mitchells and Butlers, said: “We are pleased with the continued strong trading performance, which has remained ahead of the market through the year. The combination of easing inflationary costs and continued sales growth will ultimately benefit our profit levels for the year.

“Our focus remains on the effective execution of our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales.” 

He added: “With the unique strengths of our business, including a diverse portfolio of established brands, value proposition and enviable estate locations, we are well positioned to continue to grow profitability and market share into next year.”