null Skip to main content
​M&B Reports Significant Profit Increase as Inflation Eases

​M&B Reports Significant Profit Increase as Inflation Eases

Posted by Emma on 24th May 2024

Mitchells & Butlers (M&B), the hospitality giant behind popular brands such as All Bar One, Toby Carvery, and Miller & Carter, has reported a significant profit increase for the past half-year, with figures more than doubling due to reduced cost inflation.

Worcester, Mitchells and Butlers, Friar Street - - 6151491 Worcester: Mitchells and Butlers, Friar Street by Michael Garlick, CC BY-SA 2.0, via Wikimedia Commons

Investors responded positively, with M&B shares climbing up to 10% on Wednesday morning following the announcement. The company, which operates 1,716 venues, achieved a pre-tax profit of £108 million for the 28 weeks ending April 13—an increase of £40 million from last year.

Revenue also rose, reaching £1.4 billion compared to £1.28 billion a year earlier, driven by a 7% like-for-like growth. This growth reflects strong consumer spending despite broader economic pressures, increasing the average spend per customer across all M&B brands. Food sales saw a 7.7% rise, while drink sales increased by 6%.

However, the company noted a slight dip in food and drink volumes post-Christmas, compensated by higher pricing. M&B expects to face £55 million in additional costs this fiscal year, mainly from the national living wage increase. Nevertheless, lower energy prices and decelerating food inflation mitigate these costs.

Phil Urban, CEO of M&B, stated, "Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in robust profit recovery for the period." He emphasised the company's commitment to its strategic initiatives, including the Ignite programme and capital investments, expected to drive further cost efficiencies and sales increases.

The Miller ^ Carter Steakhouse - - 5451001 The Miller & Carter Steakhouse by Anthony Parkes, CC BY-SA 2.0, via Wikimedia Commons

As M&B continues to leverage its strategic initiatives for long-term success, the company remains optimistic about building further momentum and enhancing value from its extensive estate portfolio and customer offerings. We are confident that these initiatives will continue to drive our growth and profitability.

We value your thoughts and comments on M&B's strategic initiatives and their impact on the company's financial health. Your feedback is important to us, so please share your views below.