Mitchells & Butlers (MAB) H2 2024 earnings summary

Executive summary

• Achieved strong recovery from FY 2023, with robust growth across all key operational metrics and continued outperformance of the market.

• Like-for-like sales grew 5.3% year-over-year, consistently ahead of sector benchmarks.

• Adjusted operating profit increased by 41.2% to £312m, with operating margin improving to 12.0%.

• Full capital programme and Ignite initiatives delivered efficiencies, value, and strong returns.

• Record staff engagement and guest review scores contributed to sustained market outperformance.

Financial highlights

• Revenue rose 6.1% to £2,610m compared to the previous year.

• Adjusted operating profit up 41.2% to £312m; profit before tax up 88.4% to £211m year-over-year.

• Earnings per share increased 69.1% to 26.4p; operating margin recovered to 12.0% from 9.0%.

• Cash flow before bond amortisation was £185m; net cash flow after bond amortisation was £62m.

• Net debt reduced to £989m, 2.2 times EBITDA (excluding leases).

Outlook and guidance

• Like-for-like sales growth of 4.0% in the first seven weeks of FY 2025.

• Sales performance expected to continue beating the market; cost inflation anticipated at £100m (5% of cost base) in FY 2025.

• Further sales and efficiency initiatives in the pipeline; FY25 capex to increase to approximately £200m.

• Use of COVID tax losses to reduce cash tax paid until FY26.