Weather hits M&B sales growth
19 July, 2012
Mitchells & Butlers saw like-for-like sales growth of just 0.4% in the 14 weeks to 14 July and 1.9% for the 42 weeks of the year to date. It said the recent period had been adversely hit by the persistent wet weather and the negative impact of Euro2012 football on food-led businesses.
However, the UK's biggest pub and restaurant operator said that trading on key days and special occasions has remained strong with 4% like-for-like sales growth over the five days of the Diamond Jubilee weekend. Like-for-like growth in the most recent nine weeks had been better at 1.6%.
In the last 14 weeks, food like-for-like sales were up 2%, with drink sales declining 1.4%. Food was ahead 2.9% over 42 weeks.
Total sales forits retained estate were up 5.1% in the first 42 weeks, against the same period last year. Total company sales, including the impact from major disposals last year, were up 2.6%.
Latest Coffer Peach Business Tracker data, published yesterday, showed pub and restaurant groups collectively increase like-for-like sales by 1.3% in June, with football on TV boosting drink-led pubs at the expense of food-led businesses. See Mixed fortunes for pub and restaurant groups in June - but market lfls up 1.3%
M&B's execuive chairman Bob Ivell, said: "The trials of our new 'ways of working' are progressing well and the roll-out of free wi-fi across the whole of our estate is now more than 50% complete. We continue to focus on delivering excellent customer service and guest satisfaction to drive operational performance. Overall, the business transformation programme remains on track."
He added that the process to appoint a new CEO and further non-executive directors was continuing.
Trading conditions remained challenging with a difficult consumer environment together with ongoing inflationary cost pressures, added Ivell.
"However, the combination of our strong brands, assets and operating capabilities as well as the benefits from the business transformation programme leave us well positioned to grow the business."
For full statement, see www.mbplc.com/
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