Mitchells & Butlers (MAB) H2 2025 earnings summary

Executive summary

• Like-for-like sales grew 4.3%, consistently outperforming the market for the ninth consecutive year, with strong guest reviews, record-low team turnover, and high engagement.

• Adjusted operating profit increased 5.8% to £330m, with operating margin up 0.2ppts to 12.2%, despite a GBP 11 million unexpected National Insurance cost in H2.

• Record non-financial metrics achieved for guest satisfaction and team engagement.

• Accelerated capital investment programme delivered strong returns, with ROI of 35-36% across remodels.

• Strong balance sheet and cash flow, with net debt reduced to £843m (1.8x EBITDA) and pension position moved from deficit to £132m surplus.

Financial highlights

• Revenue rose 3.9% to £2,711m year-over-year.

• Adjusted operating profit up 5.8% to £330m; profit before tax up 16.6% to £246m.

• Earnings per share increased 17% to 30.9p.

• Net cash flow of £16m after bond amortisation; cash flow from operations was £146m.

• Net assets per share increased to £4.76, up from £4.33.

Outlook and guidance

• Facing a £130m cost headwind this year (6% of cost base), mainly from labour and red meat inflation.

• Cost inflation expected to ease by 2027-2028.

• Capex to rise to approximately £210m in FY 2026, with further site acquisitions possible.

• Mitigation efforts ongoing, with Ignite program and efficiencies driving incremental savings.

• No immediate plans for dividends or share buybacks; focus remains on deleveraging and prudent capital allocation.