Pub Group Mitchells & Butlers sees annual results at top end of forecast, shares jump
Sees FY results at top end of market consensus
H1 adjusted operating profit 164 mln pounds
Shares among top gainers on FTSE 250
Rewrites throughout to add details, background, share moves and analyst comments
By Echha Jain
May 22 (Reuters) - British pub groupMitchells & Butlers MAB.L on Wednesday forecast itsannual results would be at the top end of consensus expectations on easing costs and a pick up in sales, sending its shares up about 6%.
Resilient demand has helped British pub groups during an uncertain economic environment even as high inflation curbs consumer spending.
UK consumer prices rose by an annual 2.3% last month, down sharply from a 3.2% increase in March and the lowest since July 2021, but fell less than expected, pointing to persistent price pressures, according to data released on Wednesday.
Analysts had expected annual earnings before interest and tax of about 289.8 million pounds ($369.12 million) and revenue of 2.6 billion pounds at the top end, according to LSEG data.
Shares of the Birmingham-based company, which operates more than 1,700 pubs and restaurants across the UK, jumped 6.2% by 0734 GMT.
Last week, rival J D Wetherspoon JDW.L also forecast meeting the upper end of the market view for its annual profits after posting higher third-quarter sales.
Mitchells saidlike-for-like sales have grown by 5.3% over the most recent four weeks and there ismomentum for further progress going forward into fiscal 2025.
The owner of theToby Carvery, Harvester and All Bar One brands reported adjusted operating profit of 164 million pounds for the half year ended April 13, up 64% comparedwith a profit of 100 million pounds a year ago.
Overall cost inflation, which had slowed the recovery pace for pubs in the country after the pandemic, had abated further, the company added.
Analysts at JPMorgan said the company's positive commentary on the resiliency of like-for-like sales and abating cost inflation is "encouraging and should bode positively for the broader UK pubs sector".
($1 = 0.7851 pounds)
Reporting by Echha Jain and Prerna Bedi in Bengaluru; Editing by Rashmi Aich and Sharon Singleton
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