Mitchells & Butlers (MAB) H1 2025 earnings summary

Executive summary

• Like-for-like sales grew 4.3% in the first half, consistently outperforming the market by about 3 percentage points, supported by efficiency initiatives and a diverse brand portfolio.

• Operating profit increased 10.4% year-over-year to £181m, with operating margin up 70 basis points to 12.4%.

• EPS rose 23.5% to 16.8p for the half, aided by interest income and pension surplus recognition.

• Net debt reduced to £860m (1.9x EBITDA, excluding leases), reflecting strong cash flow and balance sheet strengthening.

• Record staff engagement and guest review scores, with guest sentiment at 4.6/5.

Financial highlights

• Revenue rose 4.2% year-over-year to £1,454m for the 28-week period.

• Operating profit up 10.4% to £181m; profit before tax up 24.1% to £134m.

• Earnings per share increased 23.5% to 16.8p.

• Operating cash flow increased to £261m, with net cash flow before bond amortisation at £131m.

• Net debt reduced from over £2bn in 2015 to £860m in HY 2025.

Outlook and guidance

• Full-year outturn expected at the top end of consensus, with positive momentum anticipated to continue into next year.

• Cost headwinds for the year remain at £100m (about 5% of cost base), mainly from labour and statutory increases.

• FY26 expected to see higher inflation, with cost increases approaching £130m (just under 6% of cost base).

• From 2027, cost headwinds expected to revert to trend at around £90m per year.