Pub group Mitchells & Butlers sees profit slide 17%

Mitchells & Butlers, the UK pub group in which Irish billionaires John Magnier and JP McManus have a significant stake, saw profit fall 17 per cent in the first half of its financial year as costs remained high amid a challenging economic environment.

But the largest listed pub group in Britain said its medium-term outlook on costs was improving as it reported rising sales over the past six weeks..

The company earned £100 million (€114.7 million) in adjusted operating profit for the six months to April 8th, compared with a profit of £120 million a year ago.

Elevated costs pose a big challenge for the UK’s hospitality industry, which has been slowly recovering from Covid-19 pandemic lows, although resilient customer spending has helped it keep its head above water.

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“The trading environment for the hospitality sector remains challenging with inflationary costs putting pressure both on the industry’s margins and disposable income of our guests,” chief executive Phil Urban said in a statement.

Sales growth in the most recent six weeks was at 8.9 per cent on a like-for-like basis from a year ago, the group said. – Reuters