Mitchells & Butlers has reported full-year revenue of £2.6bn, reflecting like-for-like growth of 5.3%, outperforming the wider market by 2 percentage points.
Underlying operating profit increased 41.2% to £312mn, slightly ahead of market expectations. The uplift reflected top-line growth as well as reduced cost inflation, reduced cost inflation, and improved efficiencies.
Free cash flow increased from £94mn to £234mn, reflecting the strong operating performance and stability in investment expenditure. Net debt, including lease liabilities, fell £0.2bn to £1.4bn.
Like-for-like sales in the first seven weeks of the current year grew by 4%. This is expected to slow across the rest of the year. The group anticipates headwinds of around £100mn largely due to increased labour costs.
The shares were broadly flat in early trading.
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Mitchells & Butlers key facts
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