By Adam Whittaker
Mitchells & Butlers swung to a pretax profit for its fiscal year as sales and revenue grew.
The U.K. restaurants and pubs group reported a pretax profit for the year ended Sept. 28 of 199 million pounds ($250.1 million), from a 13 million pound loss for the comparable 53-week period a year prior.
Revenue was 2.61 billion pounds compared with 2.50 billion pounds the previous year and was driven by a like-for-like sales growth of 5.3%.
Mitchells & Butlers said its profit recovery was aided by easing inflationary costs and a focus on operational efficiencies.
The company said it has seen a strong start to fiscal 2025 with like-for-like sales up 4% in the first seven weeks of the year.
However, the group expects increased inflationary cost headwinds in the year ahead and warned measures enacted in the U.K. Budget which will cause labour costs to rise, it said.
These are the most significant cost headwind the group expects to face in fiscal 2025, the company said. Increases in the statutory National Living Wage and increase in employer national insurance contributions both take effect from April 2025, it said.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
November 27, 2024 02:54 ET (07:54 GMT)
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