Pubs giant M&B sees costs eating into margins

0 The group has a vast portfolio including Toby Carvery, All Bar One, Harvester and O’neill’s

Toby Carvery owner Mitchells & Butlers has benefited from a rise in sales but warned that its margins will fall due to rising costs.

Like-for-like sales for the 43 weeks to 28 July were up 1.3 per cent, with food sales up 0.3 per cent and drink sales up 2.5 per cent. Over the 11 weeks to 28 July, sales rose 0.9 per cent on a like-for-like basis.

The firm, which owns a string of brands including All Bar One and Harvester, said it was still facing significant cost headwinds, and expected

margins to dip year-on-year.

The group has been working to offset a spike in buying costs on the back of the Brexit-hit pound. It has still been expanding and investing in its estate, however, opening up five outlets and completing 228 conversions and remodels of its sites in the financial year to date.

Chief executive Phil Urban said: “We have been encouraged to see sales recover now that the World Cup has finished and as we continue on our longer-term journey.”