Mitchells & Butlers reported a full-year profit of £19 million, a significant turnaround from the previous year’s £13 million loss, driven by strong trading performance throughout the year.
This improvement follows total revenues reaching £2.6 billion for the year ended 28 September, up from £2.5 billion the previous year, with like-for-like sales increasing by 5.3%.
Operating profits surged by 41.2% to £312 million, boosting the pub group's operating margin to 12% by year-end, compared to 9% in the previous year.
Over the year, the pub group reduced its net debt to £989 million, down from £1.1 billion the previous year, excluding £447 million in IFRS 16 lease liabilities.
Following the year-end, Mitchells & Butlers reported a strong start to FY25, with like-for-like sales increasing by 4% in the first seven weeks.
Phil Urban, CEO of Mitchells and Butlers, said: “We are delighted by the very strong performance during the year. Like-for-like sales continued to outperform the market which, coupled with easing inflationary costs and focus on efficiencies, has resulted in very strong profit recovery.
“We face increased inflationary cost headwinds in the year ahead. However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales.”
He added: “Coupled with our market-leading estate and customer offers, we are confident that this will enable us to further grow market share and secure continued long-term outperformance.”