Mitchells & Butlers welcomes strong festive trading in Q1
The group made a strong start to the financial year, with like-for-like sales up by 6.5% over the ten weeks to 3 December, primarily driven by drink sales growth
Mitchells and Butlers has welcomed continued strong trading over the festive season, as like-for-like sales rose by 10.4% in its first quarter, with trading bolstered by the Christmas period.
The group made a strong start to the financial year, with like-for-like sales up by 6.5% over the ten weeks to 3 December, primarily driven by drink sales growth.
Following that, growth “significantly” increased in the last five weeks, largely due to last year’s comparative being impacted by the Omicron variant, which resulted in a downturn in activity across much of the festive season.
Comparing with the same period in FY 2019, the last full financial year before Covid-19, like-for like sales were still up 8.9% over the first 15 weeks to 12 January 2019, with 9.2% growth in the first ten weeks followed by 8.5% growth in the last five weeks, despite key recent weeks being negatively impacted by industrial action.
Over the period, the group focused on investing in its estate, premiumising where possible as well as improving amenity. In the year to date, it has completed 43 conversions and remodels and opened one new site, a second All Bar One at Edinburgh Airport.
Phil Urban, CEO said: “We are encouraged by a strong performance through the first quarter and delighted to have been able to welcome our guests back over the festive trading season after three years of disruption due to Covid 19, setting sales records as we did so.
“However, we are mindful that the trading environment for the hospitality sector remains very challenging with inflationary costs putting sustained pressure both on the industry’s margins and disposable income of our guests.”
He added: “We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. Combined with our diverse portfolio of established brands, value proposition and enviable estate locations, we believe we are well positioned to meet the challenges of the year ahead.”