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LONDON - Mitchells & Butlers plc (LON:MAB), a leading operator of managed restaurants and pubs in the UK, on Thursday reported robust first-half results on Wednesday, with like-for-like sales growth outpacing the market and operating profit rising significantly.
The company reported total revenue of £1.45 billion for the first half of fiscal 2025, up 4.2% from £1.40 billion in the same period last year. Like-for-like sales grew 4.3% YoY, driven by a 3.8% increase in food sales and a 4.3% rise in drink sales.
Operating profit jumped 10.4% to £181 million, compared to £164 million in the first half of 2024. The operating margin expanded to 12.4% from 11.7% a year earlier.
Mitchells & Butlers now expects full-year operating profit to be at the top end of current analyst consensus, which stands at £322 million according to FactSet data.
Phil Urban, Chief Executive, commented: "The strength of our first half performance is driven by continued focus on maximising the guest appeal of our diverse portfolio of brands to drive sales, supported by efficiency initiatives delivered through our Ignite programme of work."
The company reported strong recent trading, with like-for-like sales up 6.0% over the last 10 weeks. However, it anticipates cost headwinds of approximately £130 million in fiscal 2026, primarily due to increased labor and food costs.
Mitchells & Butlers also made progress in strengthening its balance sheet, reducing net debt to £860 million from £1.04 billion a year ago, excluding lease liabilities. This represents a net debt to EBITDA ratio of 1.9x on a last year basis.
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