Mitchells & Butlers sales rise
The company said that second quarter sales were impacted by the January VAT increase, adverse weather conditions and a lower level of promotional activity, down by a third compared with last year.
M&B said that despite this reduced level of promotions, significant market share gains were achieved with like-for-like food and drink sales up 4.3% and 0.3% respectively against the declines in pub industry food sales of 5.2% and in the on-trade drinks market of 4.9%.
In current trading like-for-like sales were up 1.9% in the most recent nine week period with a continued lower level of promotional spend.
Adam Fowle, CEO, said: "The business continues to trade well and we are pleased with the progress made in the first half with improved sales and margins leading to an increase in operating profits and profit before tax of 12.2% and 55.3% respectively. These results underpin our confidence in our strategy of increasing shareholder value by reshaping Mitchells & Butlers around its key food led brands."
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