Mitchells & Butlers 24-week LFL Sales Up; Sees Sharp Sales Drop Due To COVID-19

(RTTNews) - Mitchells & Butlers Plc. (MAB.L, MLB), an operator of managed restaurants and pubs, Wednesday reported that its like-for-like sales for the first 24 weeks of the year, up to March 14, were 0.9%. However, the company projects a further significant downturn in sales as recent trading has been severely impacted by COVID-19 pandemic.

The company also projects a significant reduction in its expected outturn for 2020. Citing the uncertainty, the company said it can no longer provide detailed guidance on the expected forward financial performance for the year.

In its trading update, the company said its trading has been severely impacted by the containment measures taken by the Government due to COVID-19. The measures include the recommendation to avoid pubs and restaurants.

Mitchells & Butlers said the unprecedented COVID-19 situation is currently having a material impact across the sector. Given the rapidly evolving nature of the situation, it is impossible to quantify the impact COVID-19 could have on its financial performance.

The company is taking various actions to protect trading and cash flow, including suspension of the capital programme and reduction of costs across the business.