Mitchells & Butlers (M&B) reported a “resilient” performance for the first 17 weeks to 26 January, with like-for-like sales up 0.7%.
It said it had seen a weak first three weeks of December, strong trading over Christmas and New Year, followed by a satisfactory January to date, with like-for-like sales up 0.2% over the last 10 weeks.
Like-for-like sales across its Residential pubs were op 0.8% over the 17 weeks, while its High Street sites reported a 1% rise in like-for-like sales, with good growth in Central London.
It said its food sales had been strong, up 4.6% on a like-for-like basis. However, drink sales declined 1.1%.
M&B said that in the first 30 weeks since the introduction of the smoking ban, like-for-like sales in its English pubs not previously converted to non-smoking had increased 0.6%, with food sales up 4.9% and drink sales down 1%.
Like-for-like sales across it Scottish estate for the 17 weeks were up 4.4%.
It said its conversions programme of the former Whitbread sites would be completed by the half year, with 181 pubs already converted to its brands and formats. It said that in a more difficult consumer environment these sites were running at around 17% above the levels at which they acquired.
The company said it remained cautious on the outlook for consumer spending and in particular the near term prospects for the on-trade beer market.
It said that the smoking ban had accelerated the shift in the sales mix to food, which was having an adverse impact on gross margins and that rising food inflation continued to put upward pressure on costs.
The company said that strong management action was being taken to reduce both fixed and variable operating costs by some £20m.
However, it said that even with the implementation of these plans it would be challenging to maintain fully net retail margins for the year, particularly in the first half.
