Mitchells & Butlers on course for profits despite rising costs

Thursday, December 8, 2022

Mitchell & Butlers PLC said on Wednesday its Birmingham-based establishment of pubs, bars and restaurants had reported a profit and revenue rise as comparable revenues had grown compared to the previous year before the pandamic.

The chain, which includes Toby Carvery and Harvester, informed shareholders on Wednesday that like-for-like sales had risen 6.5 per cent since the end of September.

Mitchell's & Butlers said that it expects inflation to contribute by 10 per cent to 12 per cent to its cost base of around £1.8 billion by 2023.

Profits reported by the government would have been close to the levels seen before Covid if they had not been hit by a £70 million rise in utility bills during the year, as rising gas and electricity prices sent bills ballooning.

Even so, it noted customers "worries about the cost of living, suggesting tentative optimism about its outlook.

"Combined with our diverse portfolio of well-known brands, value proposition, strong estate locations and talented people, we are well positioned to face both the challenges and opportunities ahead,"

Phil Urban

Phil Urban, co-chief executive of Mitchells & Butlers, said: "We are pleased with the results today. It's been a difficult two years and we have been waiting for the signs of recovery as people slowly return back to pubs and restaurants.