Mitchells & Butlers sees FY at top end as margins improve, inflation eases

27th Jul 2023 07:46

(Sharecast News) - UK pub group Mitchells & Butlers on Thursday said it expected full year results to be at the top end of market expectations after reporting a rise in third-quarter like-for-like sales.

Revenue rose 9.7% helped by strong Father's Day sales in June and steady demand for food and drinks.

The company said softening cost pressures would allow it to rebuild margins towards pre-Covid levels next year.

"There are indications that cost inflation is now starting to abate such that the current year cost headwind should be at the bottom end of the 10-12% range previously identified," the company said.

"We are working hard to mitigate these pressures as far as we are able, both through driving sales growth and implementing efficiencies."

Reporting by Frank Prenesti for Sharecast.com