Mitchells & Butlers reports US$1.9B revenue in HY2025 amid rising costs

UK – Managed restaurants and pubs operator Mitchells & Butlers, known for brands such as O’Neill’s, Harvester, and Toby Carvery, has reported half-year 2025 (HY2025) revenue of £1.45 billion (US$1.96 billion), up from £1.39 billion (US1.88 billion) in the same period of 2024.

For the 28 weeks ended 12 April 2025, the company posted an operating profit of £181 million, a 10.4% increase compared to £164 million (US$222 million) in HY2024, reflecting a robust trading performance supported by strong like-for-like sales growth.

During Spring 2025, like-for-like sales rose by 6%, boosted by key seasonal events such as Easter and Mother’s Day, with beverage sales outpacing food sales, growing by 5% compared to 3.6%.

The company’s operating margin improved to 12.4%, up from 11.7% the previous year, underscoring enhanced operational efficiency across its diverse brand portfolio.

Despite this positive momentum, Mitchells & Butlers anticipates a £130 million (US$176 million) increase in costs for the full year, primarily driven by rising labor expenses and expected surges in food prices, notably meat.

These cost pressures include increases in the National Living Wage and employer National Insurance contributions (NICs), which are forecasted to impact the latter part of the fiscal year.

The company’s previous cost increase forecast of £100 million (US$135 million) remains unchanged for 2025, with the additional £30 million (US$40.6 million) expected in 2026 as cost inflation accelerates.

Phil Urban, Chief Executive, commented on the results, “The strength of the first half is driven by our focus on maximising the appeal of our diverse portfolio, supported by initiatives delivered through our Ignition programme. We are encouraged by sustained like-for-like sales growth, which continues to outperform the market.”

Pre-tax profits climbed 24% to £134 million (US$181.4 million), and basic earnings per share rose to 16.8p from 13.6p.

The company’s broad brand portfolio, spanning family-friendly restaurants to premium steakhouses and popular pubs, continues to resonate with customers, helping it gain market share despite inflationary pressures.

While cost headwinds are expected to rise, the group’s operational excellence and strategic focus position it well to navigate challenges and deliver sustained profitability.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.