Mitchells & Butlers Reports Strong Half-Year Results, Credits Efficiency Drive
Credit Mitchells & Butlers
Pub and restaurant group Mitchells & Butlers has reported a robust performance in the first half of 2025, with a sharp rise in profits and steady sales growth across its estate, bolstered by its ongoing operational improvement programme.
The group, which owns and operates restaurant and bar brands including Browns, Miller & Carter and All Bar One, saw an operating profit of £181m, up 10.4% from the prior half-year (HY24: £164m).
It delivered like-for-like sales growth of 4.3% in the first half of the year, while its operating margin increased to 12.4% (HY24: 11.7%). The business says full-year operating profit is expected to be at the top end of the current consensus.
The group cites total revenue of £1,454m, an increase on the £1,396m earned in the previous half-year. This amounted to a profit before tax of £134m (HY24: £108m) and basic earnings per share of 16.8p (HY24: 13.6p).
Chief executive Phil Urban pointed to the company’s strategic transformation initiative – known internally as the Ignite programme – as a central factor in its positive performance. The initiative encompasses 40 focused projects aimed at improving both revenue generation and cost control across the business.
“Our strong trading reflects the continued success of investing in our brands’ appeal and guest experience,” said Urban. “Through Ignite, we are delivering operational efficiencies and smarter ways of working that enhance our competitive edge in a challenging market.”
Despite the upbeat results, Mitchells & Butlers acknowledged that headwinds remain. Rising wage costs and continued food price inflation are expected to present challenges through the second half of the year and into 2026. However, the business remains confident in its strategic direction.
Urban added: “We are aware of the cost pressures on the horizon, but our focus remains fixed on executing our strategic plan. Our well-invested estate and clear brand propositions leave us well positioned to deliver long-term value.”
Julie Palmer, partner at Begbies Traynor, said:
“Mitchells & Butlers’ impressive performance highlights how the larger players are proving resilient, even against a backdrop of higher costs and low consumer confidence across the leisure sector.”
“M&B’s healthy sales growth stands in contrast to these factors, and suggests there is an underlying current of consumer confidence that these industries can ride. It is encouraging for the sector as a whole that people are still finding room in their household budgets to go out and enjoy a drink or a meal.”
“As we head towards the key summer months, there’s lots to be happy about, but with £100m of additional costs starting to set in, the All Bar One and Toby Cavery operator could see its profit performance dampen if wet weather comes. For now, M&B will know it has to boost efficiencies whilst keeping its prices, offers and the experience it delivers appealing to customers.”
Mitchells & Butlers operates 1,723 venues across the UK and Germany, with 1,653 under direct management.