17 January 2024 , 15:19
1311
0
Harvester and Toby Carvery owner, Mitchells and Butlers (M&B), has reported "strong" sales recently, but is concerned the upcoming rise in the national living wage will impact on the company's costs.
The firm has seen robust sales at the start of the new financial year, despite economic uncertainties. Based on a 7.2% like-for-like sales growth in the past eight weeks of 2024, M&B predicts that the sales outcome for 2024 will be towards the higher end of its current financial expectations.
The chain enjoyed strong sales over the festive period, with total sales growth of 9.7%. Like-for-like sales also increased over five key festive days. M&B noted that overall cost pressures are now easing, except for a 9.8% increase in the national living wage for workers aged 23 and over from April this year.
Phil Urban, the chief executive of Mitchells and Butlers, expressed his delight over the strong trading performance during the festive season. He said: "We are delighted by the strong trading performance over the festive season, with very strong performances across our brands portfolio thanks to the hard work of our teams."
He added: "Growth was particularly strong on key dates, with record sales for Christmas Day based on 229,000 meals served, supported by strong trading in the run-up to Christmas, with the return of work parties and festive gatherings driving sales. Our focus remains on the effective execution of our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales."
Zoo boss kills four goats before serving them up to eat at Christmas party
"With the unique strengths of our business, including a diverse portfolio of established brands and enviable estate locations, we are well positioned to continue to grow profitability and market share in the year ahead."
The company, founded over a century ago in 1898, experienced a drop in profits reported in November 2023 due to steep cost increases.
This was attributed to lower valuation of properties and rising costs, which notably included steeper wage bills.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]