By Mitchells & Butlers, the U.K. pub-and-restaurant operator, announced a swing to a pretax loss for fiscal 2023 due to one-time charges. Despite this, the company saw an increase in revenue thanks to strong performances from all its brands.
Pretax Loss and Adjusted Profit
In the 53 weeks ended Sep. 30, Mitchells & Butlers reported a pretax loss of £13 million, compared to a profit of £8 million in the previous year. However, when adjusted for comparison purposes, the 52-week pretax profit was £112 million, slightly lower than the £124 million recorded in the same period a year ago.
Operating Profit and Revenue Growth
Operating profit decreased from £124 million to £98 million for the 53-week period, primarily due to valuation movements in their property portfolio and the absence of £52 million in non-recurring government support that was included in the previous year’s results. Despite these challenges, revenue rose to £2.50 billion from £2.21 billion, driven by stable volumes and strong like-for-like sales growth across all of the company’s brands.
Cost Headwinds and Sales Growth
The company acknowledged significant cost headwinds in fiscal 2023, but they anticipate a reduction of around £65 million in overall cost headwinds for the upcoming year. This reduction should allow Mitchells & Butlers to rebuild margins towards pre-pandemic levels. Additionally, the company reported a 6.5% increase in like-for-like sales during the first ten weeks of fiscal 2024, with drink sales as the primary driver.
Positive Outlook
Despite being mindful of the challenges faced by U.K. consumers, Chief Executive Phil Urban expressed confidence for the financial year ahead, citing the strength of their sales growth and an improving cost environment.
Comments