UK pub group Mitchells & Butlers sees margin growth as costs ease

Nov 30 (Reuters) – Mitchells & Butlers Plc (MAB.L) said on Thursday it aims to rebuild its margins to pre-pandemic levels on the back of easing input costs after the British pub group posted an about 8% fall in annual profit in a year blighted by cost pressures.
British pub groups and retailers are lining up offers to attract customers as Britons gear up for a merry holiday season.
“Whilst we remain mindful of the pressures that the UK consumer is facing, the strength of our sales growth alongside an abating cost environment gives us confidence for the financial year ahead,” CEO Phil Urban said in a statement.
Mitchells & Butlers said its like-for-like sales rose 7.2% in the new fiscal year that started on Oct. 1.
The company, which had tweaked its menus last year to tackle high costs, said it expects overall cost headwinds for the year to reduce to about 65 million pounds ($82.5 million), underpinned by a reduction in energy prices and slowing food inflation.
The owner of the Toby Carvery, Harvester, and All Bar One brands said its adjusted operating profit for the year ended Sept. 30 came in at 221 million pounds, compared with 240 million pounds a year earlier.
($1 = 0.7880 pounds)
Reporting by Radhika Anilkumar and Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips
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