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Mitchells & Butlers on Thursday said fourth-quarter sales topped pre-virus levels, despite the pub and bar owner facing extreme hot weather in the UK and rail strikes.
Shares were down 8.4% at 123.60 pence each on Thursday morning in London.
The Birmingham-based operator of pubs, bars and restaurants said in the quarter ended September 24, total sales rose 1.5% from three years earlier, before the onset of the pandemic.
‘Like-for-like sales improved in the fourth quarter, despite the ongoing impact of extreme heat as well as further rail strikes, both of which disrupted trade. Sales over the August bank holiday were encouraging, with like-for-like growth over the three-day weekend of over 6%, before returning to levels consistent with the quarter as a whole,’ the company said.
For the full-year, sales were up 1.1% on pre-virus levels. The company reported revenue of £1.07 billion in financial 2021, down from £1.48 billion the year before. In financial 2019 it booked revenue of £2.24 billion.
Mitchells & Butlers welcomed UK energy price cap measures but warned it expects its total energy and utility costs to have risen to £150 million for the full-year, up from the pre-pandemic comparative of £80 million.
‘Even with the cap in place anticipate a further increase on that for FY 2023,’ it cautioned.
Chief Executive Phil Urban said: ‘The trading environment for the hospitality sector remains very challenging, with cost inflation putting increasing pressure on margins, and we are also mindful of the pressures on the UK consumer over the coming months.
‘We remain focused on the delivery of our Ignite programme of initiatives, driving sales and delivering cost efficiencies. This will, combined with our diverse portfolio of well-known brands and strong estate locations, put us in a stronger competitive position to face the challenges ahead.’
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