Mitchells & Butlers’ Share Price Plunged 9.6% on FY 2023 Results

The Mitchells & Butlers plc (LON: MAB) share price plunged 9.55% as of 10:55 GMT after releasing its full-year results for the 53 weeks ended 30 September 2023. The company achieved a notable like-for-like sales growth of 9.1% compared to FY 2022, demonstrating exceptional performance surpassing market averages.

The pubs, bars and restaurants company recorded a significant increase of 17.6% in adjusted operating profit (on a 52-week basis, net of government support). The firm witnessed a reduction in cost pressures as headwinds started to wane. The acquisition of Ego Restaurants presents opportunities for synergy and expansion.

The pub and restaurant chain noted that Improved guest feedback and heightened employee engagement scores indicate a positive trend. 

Mitchells & Butlers’ total revenue amounted to £2,503 million (compared to £2,208 million in FY 2022). Its operating profit fell to £98 million (compared to £124 million in FY 2022), which triggered the decline in its share price.

The company reported a loss of £13 million before tax compared to the £8 million profit recorded in the 2022 fiscal year. The firm’s Adjusted operating profit was recorded as £221 million on a 52-week basis (compared to £240 million in FY 2022).

The pubs and restaurants company revealed that its adjusted earnings per share stood at 15.6p on a 52-week basis (compared to 18.0p in FY 2022).

Mitchells & Butlers' net debt fell to £1,170 million (compared to £1,198 million in FY 2022), excluding £463 million of IFRS 16 lease liabilities (compared to £481 million in FY 2022).

The firm successfully refinanced the Revolving Credit Facility, extending it to July 2026, with an increase of £50 million to a total of £200 million. It also achieved a successful buy-in of the M&B Main pension scheme, with no further pension contributions expected.

Phil Urban, Mitchells & Butlers’ Chief Executive, commented: “We are delighted by the continued strength of our trading performance and resilience in the face of unprecedented cost headwinds.  We have achieved good growth in underlying profit, excluding government support, with like-for-like sales growth across all of our brands and record outperformance against the market. Whilst we remain mindful of the pressures that the UK consumer is facing, the strength of our sales growth alongside an abating cost environment gives us confidence for the financial year ahead.”

Mitchells & Butlers (MAB) share price. 

The Mitchells & Butlers (MAB) share price plunged 9.55% to trade at 219.80p from Wednesday’s closing price of 243.00p.