UK: Mitchells & Butlers FY sales, profits rise as food beats drinks
- FY net profits soar by 92% to GBP135m
- Net sales up 2.2% to GBP1.9bn
- Operating profits jump 22% to GBP283m
- Lower impairment costs drive profits growth
M&B said there is growth disparity across the UK
Mitchells & Butlers, the UK's largest managed operator of restaurants and pubs, has posted an increase in full-year sales and profits, although the growth in drinks sales lagged those of food, while market conditions remained tough.
Net profits in the 12 months to 28 September leapt by 92% to GBP135m (US$218.7m), the group said today (26 November). The profits rise came mainly from lower impairment costs compared to last year from a re-evaluation of M&B's property portfolio.
Meanwhile, net sales in the year climbed by 2.2% to GBP1.9bn over the same period, while operating profits increased by 22% to GBP283m.
A 3.3% food sales increase this financial year meant the segment outperformed drinks by two to one. Drinks sales grew by 1.1% and the company said food remains its primary route to long-term growth.
Group chief executive Alistair Darby, a former Marston's executive appointed last year, said: “We have worked hard this year to deliver our transformation plan and position Mitchells & Butlers for future growth. We are proud that, through the measures we have taken, we have been able to grow sales and build our margins in a challenging and competitive consumer environment.”
The company said 2013 “has not been an easy year for UK consumers”, with “significant economic disparities by region and by economic grouping”. Consumers in the 18-34 age group have been hardest hit, with areas outside of London, specifically the south and south-east of the UK, which account for 55% of M&B sales, seeing lower economic growth, the company said.
M&B's share price jumped by 4% in London trading today.
To read the company's official statement, click here.
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