Mitchells & Butlers (MAB) H1 2026 earnings summary

Executive summary

• Like-for-like sales grew 3.3% year-over-year, with total revenue up 2.5% to £1,490m and strong festive trading, while Q2 was impacted by adverse weather and macroeconomic pressures.

• Adjusted operating profit held steady at £181m despite significant inflationary and cost headwinds, with operating margin slightly down to 12.1%.

• Record guest satisfaction and team engagement scores achieved, with outperformance of the market as measured by the CGA Business Tracker.

• Strategic initiatives, including the Ignite program, cost mitigation, and accelerated capital investment, delivered value and efficiency.

• The business remains well-positioned for future growth with a diversified brand portfolio and robust balance sheet.

Financial highlights

• Revenue increased by 2.5% to £1,490m, with like-for-like sales up 3.3% year-over-year; Q1 up 4.5%, Q2 up 1.8%.

• Adjusted operating profit was £181m, with basic EPS up 3.6% to 17.4p and operating margin at 12.1%.

• Net debt reduced to £747m, or 1.6x EBITDA (excluding leases), down from £860m in HY 2025.

• CapEx rose to £117m in H1, with full-year guidance increased to £230m, reflecting site acquisitions and ongoing remodels.

• Cash flow was strong, with net cash flow after bond amortisation at £30m and cash inflow before amortisation at £98m.

Outlook and guidance

• Cost headwinds are expected to moderate, with inflationary pressures forecast to drop to £95m (about 4% of cost base) in FY 2027.

• Margin outlook is flat or slightly positive for next year, with a sales growth sweet spot around 3.9%.

• Full-year capital expenditure is projected to rise to £230m, with further site acquisitions anticipated.

• Board remains focused on prudent capital allocation and de-gearing, with no plans for asset sales or buybacks unless operationally justified.

• Strong balance sheet and diversified brands provide confidence for sustained growth.