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Mitchells & Butlers posts ‘very strong’ full year results
Hospitality operator Mitchells & Butlers, which handles chains including All Bar One, O’Neill’s and Toby Carvery, reported a 41.2% year-on-year rise in its operating profit for FY 2024.
Chief executive Phil Urban said that he was “delighted” with the company’s performance in the 52 weeks to 28 September.
“We face increased inflationary cost headwinds in the year ahead,” Urban explained. “However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales. Coupled with our market-leading estate and customer offers, we are confident that this will enable us to further grow market share and secure continued long-term outperformance.”
Mitchells & Butlers’ operating profit for the year stood at £300 million, a significant increase on the £221m figure for FY 2023, while operating costs only marginally increased from £2.238 billion to £2.298bn. Revenue was up by 6.1%, rising to £2.6bn. Like-for-like sales growth was 5.3%, outperforming the market by 1.7%, as measured by CGA Business Tracker.
The operator’s outlook forecast predicts cost headwinds in the region of £100m in FY 2025, an increase of around 5% on the current cost base.
“Against a benign backdrop of general inflation (including food and drink inputs) by far the most significant increase is now expected to be in relation to labour costs due both to increases in the statutory National Living Wage and in the recently announced increase in employer national insurance contributions, both of which take effect from April 2025,” Mitchells & Butlers’ statement explained. “We anticipate that energy costs this year, of which just over one half have been bought forward, will broadly stabilise overall with no further deflation, as has been seen in FY 2024.”
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