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Mitchells & Butlers sees sales slide after wet June

27 July 2016 by
Mitchells & Butlers sees sales slide after wet June

Pub Group Mitchells & Butlers has blamed poor June weather and Euro 2016 for a 1.3% drop in sales for the 43 weeks to 23 July 2016.

In its third quarter trading update, the 1600 strong group which includes brands such as Toby Carvery, Harvester, All Bar One and Vintage Inns, reported that like for like food and drink sales were down 1.8% and 0.9% respectively for the first three quarters of the financial year.

Sales over the spring had been slightly better, with food down 1.5% but drink up 0.2% for the 15 weeks to 23 July.

Mitchells & Butlers also warned that margins in the second half would likely be lower than in the 2015 due to the introduction of the National Living Wage in April.

So far this financial year it has converted or remodelled 232 sites, and opened five new sites.

Chief executive Phil Urban said: "Underlying trading has improved in recent months, particularly when taking into account the negative impact of Euro 2016 and the wet weather seen in June. This reflects the good progress we are making across our three priority areas: to rebalance the business, to instil a commercial culture and to increase the pace of execution and innovation.

"Clearly there is some economic uncertainty ahead following the result of the EU referendum last month, with potential implications for consumer demand. We are monitoring developments closely, but remain confident that our previously outlined strategy, based on a strong freehold estate and brand portfolio, remains appropriate to deliver long-term sustainable shareholder value."

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