Mitchells & Butlers Plc · LSE:MAB

Mitchells & Butlers — Q4 2025 Earnings Presentation

26 slides from Mitchells & Butlers's earnings presentation, Nov 28, 2025

  1. Slide 1: Full Year Results 2025

    Full Year Results 2025 Mitchells & Butlers - Restricted

  2. Slide 2: Strong operational performance

    Strong operational performance Highlights • Like-for-like sales growth of 4.3% - consistently ahead of the market • Adjusted operating profit growth of 5.8% to £330m • Record non-financial metrics for guest and teams • Accelerated capital programme delivering strong returns • Well-positioned for the

  3. Slide 3: Financial Review FY 2025

    Financial Review FY 2025 Tim Jones Chief Financial Officer Mitchells & Butlers - Restricted

  4. Slide 4: Income Statement – strong trading momentum

    Income Statement – strong trading momentum (before adjusted items) FY 2025 FY 2024 Movement 52 week 52 week % £m £m Revenue 2,711 2,610 +3.9% Operating costs (2,381) (2,298) Operating profit 330 312 +5.8% Interest (91) (99) Pensions finance income / (charge) 7 (2) Profit before tax 246 211 +16.6% Op

  5. Slide 5: Diversified estate delivering strong like-for-like sales

    Diversified estate delivering strong like-for-like sales Easter moves to April (H2) in FY25 • Like-for-like sales growth of 4.3%, • Consistent market outperformance across all cohorts • Volumes broadly flat in both food and drink • Post year end (8 weeks) sales growth of 3.8%, strengthened from Q4 F

  6. Slide 6: Adjusted EBIT movement

    Adjusted EBIT movement +£20m +£78m +£25m £(100)m £(5)m FY 2024 FY 2024 openings FY 2025 openings Like-for-like trading Efficiencies Cost headwinds FY 2025 £312m and remodels and remodels £330m Margin Margin 12.0% 12.2% Mitchells & Butlers - Restricted

  7. Slide 7: Cost headwinds driven by labour and food

    Cost headwinds driven by labour and food FY 2026 130 120 100 90 • Food cost inflation driven by red meat. Not anticipated to 80 be structural. 70 • Labour increases include 60 ➢ Annualisation of National Living Wage and National Insurance Contributions increases from April 2025 50 ➢ National Living

  8. Slide 8: Strong cash flow

    Strong cash flow FY 2025 FY 2024 £m £m Operating cash flow 484 454 Working capital movement (15) 15 • Final pension escrow return Pension – net returns 11 34 • Expansion of capital investment Capital expenditure (181) (154) programme generating strong returns Acquisitions of Pesto Restaurants Ltd -

  9. Slide 9: Balance sheet strength

    Balance sheet strength FY 2025 FY 2024 £m £m Assets Property, plant and equipment 4,591 4,419 Overall increase 3.9% driven by revaluation ROU leases 291 307 uplift Pension surplus 132 164 Other 55 53 Surplus now substantially locked in through buy out/in. Ongoing use through offset Non-current asset

  10. Slide 10: Value creation through deleverage

    Value creation through deleverage Net debt: £m ebitda • Excellent progress in reducing borrowings since 2010 from 5.1 times ebitda to 1.8 times • Pension liability of £400m now a derisked asset of £100m, reducing future cash outgoings by c.£10m pa • Will continue to reduce debt, enhance resilience a

  11. Slide 11: Strong performance

    Strong performance Financial Highlights • Like-for-like sales growth of 4.3% - well ahead of the market • Adjusted operating profit growth of 5.8% to £330m • Operating margin up 0.2ppts to 12.2% Progress on strategic Priorities • Strong cashflow, net debt reduced to £843m, 1.8 times EBITDA (excl. le

  12. Slide 12: Phil Urban Chief Executive Officer

    Phil Urban Chief Executive Officer Mitchells & Butlers - Restricted

  13. Slide 13: Sustained outperformance vs. the market

    Sustained outperformance vs. the market 2025 2026 • 9 years of sustained market outperformance (CGA Business Tracker) • Reflects the strength of our brand portfolio and estate locations • Wet-led brands delivering particularly strong growth Mitchells & Butlers - Restricted

  14. Slide 14: Responding to cost challenge

    Responding to cost challenge • Cost headwinds in FY 2026 of £130m • Annualisation of employer national insurance changes • Food inflation driven by short term increases red meat cost • Confident in ability to mitigate costs in FY 2026 and remain well-positioned for future years Mitchells & Butlers -

  15. Slide 15: Competitive advantage

    Competitive advantage Our high-quality estate of 83% freehold sites, diversified portfolio of brands and proven management team set us apart. • 1,631 managed businesses across 17 proven brand formats • 81% of the population live within 5 miles of an M&B business • Average weekly turnover £31.2k and

  16. Slide 16: Significant investment in technology

    Significant investment in technology Industry leading technology Commercial benefits Pipeline of future investment Range of guest facing and back-of- Each new technology has New technology to be integrated in FY house technologies successfully delivered sales increases or 2026 including HR and Payro

  17. Slide 17: Record people metrics

    Record people metrics Metrics Turnover 55% Retail Team Engagement 87.7 Success requires great service at all times which requires a great team of people: Apprenticeships • People metrics are at all time highs completed FY25 • Significant investment in Chef Academy • Number One Apprenticeship Employe

  18. Slide 18: Capital Investment delivering robust returns

    Capital Investment delivering robust returns Optimising our high-quality estate through systematic upgrade of amenities. • Committed to a 7-year investment cycle • Payback within 5 years ensures value for the business • Design evolution ensures brands remain authentic and relevant • Compelling retur

  19. Slide 19: Ignite driving sales and efficiency

    Ignite driving sales and efficiency Cost Inflation Product Sales Capital Investment Development • Began as a transformation programme in 2015 • Delivers continuous improvement through established ways of Productivity Data Driven Insights Our Spaces Stock Management working • 40-50 initiatives live a

  20. Slide 20: Executive Committee succession

    Executive Committee succession • Tim Jones to retire mid-2026 when we will be delighted to welcome Emma Harris • Building Executive team for the future • Successfully navigated a number of retirements over recent years Mitchells & Butlers - Restricted

  21. Slide 21: Building value into the future

    Building value into the future Clear capital Future capital Opportunity for allocation policy structure strategic growth Mitchells & Butlers - Restricted

  22. Slide 22: Well positioned for the future

    Well positioned for the future FY 2025 Highlights • Like-for-like sales growth of 4.3% - consistently ahead of the market • Adjusted operating profit growth of 5.8% to £330m • Record non-financial metrics for guest and teams • Accelerated capital programme delivering strong returns of over 36% on re

  23. Slide 23: Questions

    Questions Mitchells & Butlers - Restricted

  24. Slide 24: Full Year Results 2025 Supplementary slides

    Full Year Results 2025 Supplementary slides Mitchells & Butlers - Restricted

  25. Slide 25: FY 2025 – Outlet reconciliation

    FY 2025 – Outlet reconciliation Total Managed 1 Franchised Total MAB Opening outlets (start FY 2025) 1,666 60 1,726 Transfers 2 (15) 15 - Disposals (9) - (9) Acquisitions 1 - 1 Closing outlets (end FY 2025) 1,643 75 1,718 Notes: 1. Closing managed total includes 12 non-trading pubs 2. Lodges attache

  26. Slide 26: FY 2025 – Securitisation profile

    FY 2025 – Securitisation profile £ms Year to Mitchells & Butlers - Restricted

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