LONDON (dpa-AFX) - Pub and restaurant operator Mitchells & Butlers Plc (MLB, MAB.L) Friday said its first-half profit declined from last year, as margins were affected by continued impact of inflationary and regulatory cost pressures. Meanwhile, adjusted earnings increased helped by higher revenues and lower interest and tax charges.
The company anticipates cost inflationary pressures to ease marginally in the second half, despite a challenging consumer environment, and expects to deliver a full-year result in line with its expectations.
Revenues for the six-month period climbed 2.4 percent to 969 million pounds from 946 million pounds in the preceding year, with food sales increasing 9.4 percent and drink sales up 4.8 percent. Retained Estate revenue improved 6.3 percent to 969 million pounds, with like-for-like growth of 2.7 percent.
Executive Chairman Bob Ivell stated, 'We are continuing to deliver a resilient operating performance, maintaining the roll-out of our industry-leading brands and progressing our major business change programme.'
The company also said it has made progress in appointing a new CEO and will make an announcement at the appropriate time.
For the 28 weeks ended April 7, 2012, the company posted a profit before tax of 42 million pounds, lower than 43 million pounds reported in the previous year. Before exceptional items and other adjustments, pre-tax profit increased to 68 million pounds from 63 million pounds in the year-ago period.
On a per share basis, earnings declined to 8.7 pence from 9 pence per share in the prior year. Excluding items, adjusted earnings increased to 12.4 pence per share from 11.2 pence per share last year.
Net operating margin dropped 0.7 percentage points as a result of inflationary cost increases in energy and food, the company said.
MAB.L is currently trading at 242.2 pence, down 3.8 pence or 1.54 percent, on a volume of 13 thousand shares on the LSE.
Copyright RTT News/dpa-AFX
© 2012 AFX News
