Mitchells & Butlers Plc · LSE:MAB
Mitchells & Butlers — HY 2025 Earnings Presentation
26 slides from Mitchells & Butlers's earnings presentation, 2025
Slide 1: Half Year Results 2025
Half Year Results 2025 Mitchells & Butlers - Restricted
Slide 2: Strong performance across the period
Strong performance across the period Financial Highlights • Strong like-for-like sales growth of 4.3% - ahead of the market • Operating profit growth of 10.4% to £181m • Operating margin strengthened by 0.7ppts to 12.4% Progress on Strategic Priorities • Net debt reduced to £860m, 1.9 times EBITDA (
Slide 3: Financial Review HY 2025
Financial Review HY 2025 Tim Jones Chief Financial Officer Mitchells & Butlers - Restricted
Slide 4: Income Statement
Income Statement HY 2025 HY 2024 Movement 28 week 28 week % £m £m Revenue 1,454 1,396 +4.2% Operating costs (1,273) (1,232) Operating profit 181 164 +10.4% Interest (50) (55) Pensions finance income / (charge) 3 (1) Profit before tax 134 108 +24.1% Operating margin 12.4% 11.7% +0.7ppts Earnings per
Slide 5: Strong sales performance
Strong sales performance Easter moves to • Like-for-like sales growth of 4.3% over the April in FY25 first half • Broad-based growth across brand portfolio • Volumes broadly flat across the half in both food and drink • Last 10 weeks, including Easter and Mother’s Day in both this year and last, lik
Slide 6: EBIT movement
EBIT movement +£44m +£7m +£15m £(45)m £(4)m HY 2024 FY 2024 openings FY 2025 openings Like-for-like trading Efficiencies Cost headwinds HY 2025 £164m and remodels and remodels £181m Margin Margin 11.7% 12.4% Mitchells & Butlers - Restricted
Slide 7: Forecast cost inflation
Forecast cost inflation FY 2025 FY 2026 130 130 120 120 110 110 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Food/Drink Labour Other site and Energy Food/Drink Labour Other site and Energy central costs central costs FY 2025 FY 2026 FY 2027 onwards - Labour increases from April
Slide 8: Strong cash flow
Strong cash flow HY 2025 HY 2024 £m £m Operating cash flow 261 238 Working capital movement 30 27 • Increase in operating cash flow due to strong trading performance Pension escrow return 12 35 • Final pension escrow return received Capital expenditure (92) (81) of £12m Lease principal and interest
Slide 9: Strengthening balance sheet
Strengthening balance sheet Net debt reduction £ms Increase in amortisation (250.00) Annual Cash Interest Annual Amortisation (200.00) (150.00) (100.00) (50.00) 0.00 Sep-04 Sep-09 Sep-14 Sep-19 Sep-24 Sep-29 Sep-34 • Track record of strengthening balance sheet from previously unsustainable levels •
Slide 10: Strong performance across the period
Strong performance across the period Financial Highlights • Strong like-for-like sales growth of 4.3% - ahead of the market • Operating profit growth of 10.4% to £181m • Operating margin strengthened by 0.7ppts to 12.4% Progress on Strategic Priorities • Net debt reduced to £860m, 1.9 times EBITDA (
Slide 11: Phil Urban, Chief Executive Officer
Phil Urban Chief Executive Officer Mitchells & Butlers - Restricted
Slide 12: Market outperformance continued over first half
Market outperformance continued over first half Rolling four-weekly average like-for-like sales vs CGA Business Tracker • Like-for-like sales growth of 4.3% for the period • Outperformed the market by over c.3ppts during the first half, as measured by CGA Business Tracker Mitchells & Butlers - Restr
Slide 13: First half performance
First half performance • Strong Festive period followed by colder weather in January • Mother’s Day was particularly strong • Performance on key dates is delivered by our exceptional teams, with staff turnover at record lows Mitchells & Butlers - Restricted
Slide 14: Decade of sustained outperformance vs. robust market
Decade of sustained outperformance vs. robust market Covid 2016 2017 2018 2019 2022 2023 2024 2025 Rolling four-weekly average like-for-like sales vs CGA Business Tracker • Sustained market outperformance since 2016 • Reflects the strength of our brand portfolio and estate locations Mitchells & Butl
Slide 15: Market segment performance
Market segment performance Rolling four-weekly average like-for-like sales vs CGA Business Tracker Mitchells & Butlers - Restricted
Slide 16: Delivering great guest experiences
Delivering great guest experiences Guest sentiment vs. market • Strong guest review scores of 4.6 out of 5 across the estate despite price increases • Guest sentiment ahead of the market • Good performances across the brand portfolio realising opportunities of consistent execution of offer • Strong
Slide 17: Strategic priorities
Strategic priorities Build a more balanced business Instil a more commercial culture Drive an innovation agenda • Brand propositions • Guest-driven decisions • Build on technology investment • Conversion to successful formats • Profitable sales • Digital marketing • Upgraded amenity in core • Core o
Slide 18: Brand management
Brand management Brand operations team Brand operations team Centralised support functions Brand operations team Brand operations team Mitchells & Butlers - Restricted
Slide 19: Capital Investment
Capital Investment • Continued prioritisation of the capital investment programme delivering enhanced value from the estate • Target 7-year investment cycle • Ensure amenity levels remain high, and brands evolve in line with consumer expectations • Diverse portfolio of brands allows us to maximise t
Slide 20: Ignite
Ignite • Established programme delivering sales growth and operational efficiencies • 40-50 initiatives underway at all times delivered by cross-functional teams under the governance of the project office • Employee app launched this year providing a single portal to access benefits, payslips, and c
Slide 21: Sustainability
Sustainability • Continued progress against sustainability objectives • 180 sites with solar panels installed • Reducing reliance on gas with 74 all-electric kitchens and 5 fully electrified sites • Investment in energy consumption reduction technology • Support in place for behaviour change initiat
Slide 22: Focus on value creation for the future
Focus on value creation for the future £m £m Sales and Adjusted Operating Profit Covid • Significant progress made since 2015 • Trading turned around from behind the market to consistently outperforming • Investment in estate prioritised resulting in enhanced value creation • Net debt reduced from o
Slide 23: The Investment Case
The Investment Case Building value through strong operating performance from a well invested estate Consistent market sales outperformance Well invested, strategically located, freehold estate • Diversified portfolio of strong brands covering a wide • Advantaged portfolio, strategically located, ove
Slide 24: Questions
Questions Mitchells & Butlers - Restricted
Slide 25: Supplementary slides
Half Year Results 2025 Supplementary slides Mitchells & Butlers - Restricted
Slide 26: HY 2025 – Outlet reconciliation
HY 2025 – Outlet reconciliation Total Managed 1 Franchised Total MAB Opening outlets (start FY 2025) 1,666 60 1,726 Transfers (12) 10 (2) Disposals (4) - (4) Acquisitions 3 - 3 Closing outlets (end H1 2025) 1,653 70 1,723 Notes: 1. HY 2025 closing managed total includes 13 non-trading sites. 2. Duri