Half Year 2026 Mitchells & Butlers PLC Earnings Call Transcript
Key Points
- Mitchells & Butlers PLC (FRA:MABB) reported a strong first half with sales well ahead of the market, maintaining operating profits at GBP181 million despite cost headwinds.
- The company achieved a like-for-like sales increase of 3.3% in the first half, driven mainly by food, with a particularly strong festive season.
- Mitchells & Butlers PLC (FRA:MABB) has reduced its net debt to just under GBP750 million, about 1.6x EBITDA, excluding leases, and transformed its pension position to a GBP100 million asset.
- The company is investing in new sites and capital projects, with a return on investment for its remodel program at a strong 33%.
- Mitchells & Butlers PLC (FRA:MABB) continues to focus on sustainability, reducing its carbon footprint by 16% since 2019 and diverting 100% of waste from landfill.
- The second quarter was impacted by poor weather and macroeconomic pressures, resulting in slower sales growth of 1.8% compared to the first quarter.
- High costs, particularly in red meat and National Insurance contributions, have been significant headwinds, although partially mitigated.
- The company faces challenges in maintaining margins due to ongoing cost inflation, with a forecasted GBP95 million cost increase next year.
- Mitchells & Butlers PLC (FRA:MABB) is cautious about consumer confidence, noting potential impacts from geopolitical issues and economic conditions.
- The company acknowledges the difficulty in reading underlying growth due to various external factors, including weather anomalies and shifting calendar dates.
Right. Good morning, ladies and gentlemen. Bang on 8:30, so we'll start. Welcome to the interim results presentation for Mitchells & Butlers.
Our first half was a tale of two quarters, with quarter one being very strong, culminating with a great festive period, followed by quarter two that was impacted by poor year-on-year weather and, to a lesser extent, by the macroeconomic backdrop. That's why we're delighted with our first-half-year results, as despite quarter two softer growth in quarter two and despite the impact of incremental employers national insurance and a very high cost of stake, we managed to bring profit in just slightly ahead of expectations and slightly ahead of last year. To us, that demonstrates the power of our Ignite program and the work done on cost mitigation. And as we believe the macro issues are temporary, we are maintaining our focus on the midterm where debt service costs significantly reduce where the business is going to be very well placed.
I'm delighted to say that we are
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