Markets

Mitchells & Butlers 51-week Sales Down; Says Future Challenging With New Restrictions

(RTTNews) - Mitchells & Butlers Plc. (MAB.L, MLB), an operator of managed restaurants and pubs, reported Thursday that total sales for the 51 weeks ended September 19 declined 35.4 percent due to the enforced closure in response to the Covid-19 pandemic in March.

Since reopening on July 4, the company said it has continued to outperform the market.

For the 51 weeks, like-for-like sales dropped 3.1 percent. A 0.6 percent rise in Food was offset by 6.7 percent decline in Drink.

Since reopening in July, like-for-like sales fell 32.4 percent with sharp drop in both food and drink.

However, in August, like-for-like sales grew 1.4 percent, helped by government funded Eat Out to Help Out scheme plus a temporary reduction in the rate of VAT on certain supplies. Food sales climbed 20.1 percent, but drink fell 16.7 percent.

In the first three weeks of September, like-for-like sales declined 6.4 percent prior to the introduction of additional trading restrictions this week. Food sales grew 4.5 percent, but drink sales dropped 16.5 percent.

The company now has been trading for 11 weeks and as of now, the number of sites which have reopened has increased to over 95 percent of the estate.

Phil Urban, Chief Executive, said, "The future remains both challenging and uncertain, with only this week a curfew and other additional restrictions being imposed on how and when we can operate. However, we believe we are well placed to meet that challenge and to keep Mitchells & Butlers at the forefront of the eating and drinking-out market."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

RTTNews

Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

Learn More