Mitchells & Butlers 51-week Sales Rise

(RTTNews) - Pubs and restaurants operator Mitchells & Butlers Plc (MAB.L, MLB) Thursday said its total sales for the 51-week period ended September 20, grew 3.8 percent, with like-for-like sales edging up 0.6 percent. Margins, however, remained below last year, due to lower levels of sales, as well as spend per head.

In its pre-close trading update, the company noted that it witnessed improvement in demand in July following the World Cup, while trading conditions in August remained difficult as consumers were cautious about spending. In addition, rainfall was significantly higher than the prior year.

Food like-for-like sales for the period improved 0.7 percent, and like-for-like sales from Drink were up 0.5 percent.

For the nine weeks ended September 20, the firm's like-for-like sales slightly rose 0.1 percent from last year.

On June 15, the company acquired 173 outlets from Orchid Group, the results of which are included within total sales for the fourteen weeks following this date. Mitchells & Butlers had acquired the majority of the activities of the Orchid Group, for 266 million pounds in cash.

According to the firm, Orchid continues to trade well and it is in line with expectations.

Alistair Darby, chief executive of the company said, "Despite a difficult trading period in the last quarter, the transformation of our business is well on track. Coupled with the successful integration of the Orchid estate, this gives us confidence in our future growth prospects."

For the third quarter, the company had reported total sales growth of 3.8 percent, bringing growth in the first 42 weeks to 2.9 percent.

MAB.L is currently trading at 394.15 pence, down 2.82 percent.