Pub and restaurant operator Mitchells & Butlers Plc (MLB, MAB.L) Thursday reported a higher profit for its first half, driven by growth in revenues as well as improved margins. However, the firm anticipates consumer confidence and discretionary income growth to remain subdued for some more time.
Chief Executive Alistair Darby said, "...We are growing sales and profit in a tough market by building on the firm foundations of our excellent estate, strong brands, dedicated people and substantial scale."
For the 28 weeks ended April 13, 2013, the company posted profit before tax of 72 million pounds, higher than 42 million pounds last year. Before exceptional items and other adjustments, pre-tax profit was 75 million pounds, up from 68 million pounds a year ago.
On a per share basis, earnings increased to 14.1 pence from 8.7 pence per share in the prior year. Adjusted earnings were 14.6 pence per share, while the company posted 12.4 pence per share a year earlier.
Revenues for the period grew 2.3 percent to 991 million pounds, reflecting modest growth in like-for-like sales together with contribution from new restaurants and pubs.
Revenue growth was driven mainly by food sales, which includes 51 percent of total sales and were up 4.5 percent in the period. Drink sales were marginally higher than last year.
Like-for-like sales improved 0.3 percent, with strong trading across special occasions such as Christmas, Valentine's Day and Easter, but weaker trading in January and March due to extended periods of cold and snowy weather.
In Food, like-for-like sales grew 1.4 percent, while it declined 1.2 percent in Drink business. In both drink and food, volumes decreased, with positive movements in spend and price.
Operating margin for the half year improved 40 basis points to 14.6 percent. The company stated that it has delivered its restructuring cost savings in full.
Mitchells & Butlers also announced the appointment of Stewart Gilliland as an independent non-executive director, with immediate effect.
In London, the shares are currently trading at 400.9 pence, down 1.86 percent, on a volume of 296,386 shares.
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