By Anthony O. Goriainoff
Mitchells & Butlers PLC said Wednesday that it swung to a pretax profit for the first half of fiscal 2022 as revenue rose, and that the business environment remained difficult as cost inflation headwinds were a significant challenge to the industry.
The UK pub-and-restaurant operator said that for the 28 weeks ended April 9 pretax profit was 57 million pounds ($71.2 million), compared with a pretax loss of GBP200 million a year earlier.
Revenue rose to GBP1.16 billion from GBP219 million. The company said this reflected a period of continuous business compared with the prior year, which included significant pandemic-related closures and restrictions.
The company said that for the hospitality sector as a whole inflation headwinds were expected in utilities, wages and food. It added that based on fiscal 2019, and on a GBP1.8 billion cost base, cost inflation headwinds are expected to be in the region of 11.5% for the current year.
The company that although it is working hard to mitigate costs, “there will inevitably be a residual margin impact in the short to medium term.”
Write to Anthony O. Goriainoff at [email protected]
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