Mitchells & Butlers reported first half sales of £1.5bn reflecting like-for-like growth of 3.3%. Growth in the second quarter was slower at 1.8%, attributed to tough comparisons, the weather, and weaker discretionary spending.
Underlying operating profit of £0.2bn was unchanged despite ‘significant’ cost inflation. Free cash flow was also stable at £0.2bn. Net debt, including leases, was £1.2bn.
In the first three months of this half, like-for-like sales slowed to 1.1%. Full-year cost headwinds are expected to land at around £120mn, slightly lower than previously guided.
The shares fell 8.5% in early trading.
Our view
HL view to follow.
Mitchells & Butlers key facts
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