Managed restaurants and pubs operator Mitchells & Butlers, which operates establishments such as O’Neill’s, Harvester and Toby Carvery, has reported half-year 2025 (the second half of the fiscal year, or HY2025) revenue of £1.45bn compared to £1.39bn in HY2024.
During the 28 weeks ended 12 April 2025, operating profit stood at £181m against £164m in the same period of the previous year.
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It expects to see costs increase by £130m, attributing this to labour cost hikes and anticipated food price surges, particularly of meat.
The company’s current year cost forecast of a £100m increase remains steady, with the surge primarily attributed to rises in the National Living Wage and employer National Insurance contributions (NICs) that will affect the latter half of the year.
In its half-year results, Mitchells & Butlers showcased a trading performance, with pre-tax profits climbing 24% to £134m for the 28 weeks ending 12 April 2025.
Spring 2025 saw a 6% uplift in like-for-like sales, bolstered by Easter and Mother’s Day, with drinks sales outperforming food sales, rising 5.1% compared to 3.6%.
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By GlobalDataThe company also reported an improved operating margin of 12.4%, up from 11.7%.
Mitchells & Butlers CEO Phil Urban stated: “The strength of our first half performance is driven by continued focus on maximising the guest appeal of our diverse portfolio of brands to drive sales, supported by efficiency initiatives delivered through our Ignite programme of work. We are delighted with the like-for-like sales performance, which continues to outperform against the market.
“As we enter the second half of the year, with increased employer National Insurance contributions, we remain focused on the effective delivery of our Ignite programme of initiatives and our capital investment programme, driving further cost efficiencies and increased sales.”
