Pub food pays off for Mitchells & Butlers
Mitchells & Butlers' switch towards food-led pubs has paid off with the managed pubco's latest financial results, according to the group.
Reporting annual pre-tax profits rose 10.1 per cent to £208m in the 12 months to September 30 on turnover of £1,720m, up 5.5 per cent, M&B said with approaching half the adult population visiting a pub to eat at least once a month the group "has capitalised on this trend by repositioning its estate towards large pubs with the scale to serve high volumes of food at very attractive prices".
M&B said that the average price of a main meal in one of its pubs was around £6 and that food now accounted for some 35% of the Group's retail sales.
The group's operating profits rose 6.9 per cent to £309m, while pre-exceptional earnings per share rose 15.4 per cent to 29.3p. M&B's final dividend per share of 12.25p represents an increase of 14 per cent.
Overall like-for-like sales growth across its estate were 4.1% during the period.
The group's performance had been set against "a mixed background in the market with much more positive growth rates evident in food, wine, soft drinks and cider compared to beer and spirits".
M&B said it had already converted over to its brands 25 of the 239 pub/restaurants it had bought from Whitbread, expected a further 25 to be transferred by Christmas and an additional 50 by Easter next year.
Tim Clarke, M&B's chief executive said the results were clear evidence the group had extended its leadership of the eating-out market. "We have delivered over 15% growth in earnings per share; acquired 239 of the best pub restaurant sites in the UK and returned some £560m to shareholders before ordinary dividends.
"Our strategy of offering high quality amenity and good value food and drink is generating sustained sales growth. We have had a good start to the new financial year and we are confident of future growth prospects."
The group said sales in the seven weeks to 18 November 2006, had "continued to grow strongly with same outlet like-for-like sales 4.5% ahead of last year, 2.9% ahead on an uninvested basis".
