Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Mitchells & Butlers pub group says costs start to ease

by Staff GBAF Publications Ltd
0 comment

Mitchells & Butlers pub group says costs start to ease

By Radhika Anilkumar

(Reuters) -British pub and restaurant group Mitchells & Butlers PLC reported a fall in half-year profits on Wednesday and said supply chain costs were still a challenge but had begun to ease.

Shares in the FTSE 250 company, which were down as much as 3.7% in early trade, reversed course to rise 0.5% at 0900 GMT, while the index traded down 0.5%.

Elevated costs have challenged the UK’s hospitality industry as it slowly recovers from the impact of COVID-19 lockdowns.

“There are indications that cost inflation headwinds across the supply chain are starting to abate, although they continue to present a challenge in the near-term,” the company said in a statement.

The company based in Birmingham, central England, posted an almost 17% fall in adjusted operating profit for the half year ended on April 8 from the previous year to 100 million pounds, including government support.

Still, the 125-year old pub group said it was ahead of its prior expectations for the short and the medium term.

Given the retreat in energy prices from peaks hit last year, the company said early evidence suggested that cost increases in other areas, notably food, would soon start to slow.

After record food price increases in Britain, costs are not expected to fall to pre-COVID levels, but there are signs of some deflation in the pub group’s cost base, CEO Phil Urban said in an interview with Reuters.

Last year, the pub group initiated plans to cut electricity use and put chemical additives into its heating systems to reduce gas consumption.

Sales growth in the most recent six weeks was at 8.9% on a like-for-like basis from a year ago, the group said.

Peers Marston’s and J D Wetherspoon also reported strong sales in recent weeks, which included the May Bank holiday weekend and the Coronation weekend.

(Reporting by Radhika Anilkumar in Bengaluru; editing by Uttaresh Venkateshwaran and Barbara Lewis)