Three of the UK’s leading pub operators have posted improved trading figures after recovering from the effects of last year’s Covid-related restrictions.
Mitchells & Butlers swung to an operating profit of £121m during 28 weeks ended 9 April, against a loss of £132m in the same period last year. Total revenue jumped from £219m to £1.16bn, whilst like-for-like sales were up 1.0% on pre-Covid numbers in 2019.
“We are encouraged by the improvement in sales trajectory through the first half of the year, having made progress in each of our markets, with our food-led businesses continuing to lead the way,” said Phil Urban, Chief Executive.
However, the group warned a jump in energy costs due to the war in Ukraine and soaring food inflation would squeeze its margins in the short-to-medium term.
“The trading environment remains difficult,” said Urban. “Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages and food. In light of this, our teams have refocused their efforts on driving further efficiency and productivity gains through our Ignite programme.”
Pub group Marston’s reported an operating profit of £39.9m for the 26 weeks ended 2 April, compared with a loss of £57.2m a year earlier. Total revenue rose from £55.1m to £369.7m with like-for-like sales at 97% of 2019 levels despite restrictions over the Christmas trading period.
However, Marston’s said it was cutting costs and switching up its pricing strategies to counter a surge in food and energy expenses brought by the war in Ukraine and soaring inflation.
The group, which operates more than 1,400 pubs, said the crisis would “inevitably” hurt its earnings for the current year.
Meanwhile, annual figures from Young’s show it had also bounced back into profit.
Its total revenue for the year to 28 March jumped 251% to £309m. Despite battling restrictions and Christmas trade being significantly impacted by the Omicron variant, managed house sales were up 2.9% on a two-year comparative basis.
Total group adjusted operating profit came in at £51.4m from a £33.2m loss last year, supported by the reduction in VAT.
Sales since the end of its financial year were said to have “performed extremely well”, with managed house revenue for the last 13 weeks up 17% against the pre-pandemic levels of 2019.
CEO Patrick Dardis commented: “We have found ourselves navigating challenges at nearly every turn, whether it be storms, floods and tube strikes, or the unwelcome arrival of the Omicron variant which hampered our Christmas trading. I am delighted to announce a strong set of results that marks a return to normalised profitability with unrestricted trading towards the end of the year.”
He added: We are looking forward to the extended Jubilee weekend where we hope to break more records. Young’s are firmly back in business, with the firepower to deliver further growth.”
