M&B’s latest trading update reports total sales growth for the 51 weeks was 3.8%, with like-for-like sales increasing by 0.6%.
Having seen an improvement in demand in July following the World Cup, trading conditions during August were difficult in the pub market, as consumers remained cautious about spending and rainfall was significantly higher than last year. Like-for-like sales grew by only 0.1% in the nine weeks to 20 September.
During this period, M&B continued to focus on enhancing amenity (the accelerated remodel programme generates strong returns and food rating scores continue to improve); improving guest service (through increased investment in training) and investment in IT infrastructure (new pub systems have been rolled out to more than 1,000 outlets alongside new technology to deliver enhanced management information to our frontline teams).
The company is therefore confident in the strong platform it is building from which to grow momentum as it moves into 2015, with Alistair Darby, Chief Executive, commenting:
“Despite a difficult trading period in the last quarter, the transformation of our business is well on track. Coupled with the successful integration of the Orchid estate, this gives us confidence in our future growth prospects.”
Like-for-like sales | July IMS 42 weeks to 19 July 2014 | Current trading 9 weeks to 20 September 2014 | Trading to IMS 51 weeks to 20 September 2014 |
Total | 0.7% | 0.1% | 0.6% |
Food | 0.8% | 0.1% | 0.7% |
Drink | 0.6% | -0.2% | 0.5% |
Margins remain below last year, as a result of lower levels of sales and also of spend per head, as price increases are moderated to drive volume back into sites.
173 outlets from the Orchid Group (‘Orchid’) were acquired in June and their results are included within total sales for the fourteen weeks following this date. Orchid continues to trade well and in line with expectations, and the first few sites will be converted to M&B brands prior to Christmas this year.
In addition to the Orchid transaction, 22 new sites have been opened, and 9 sites converted or expanded.
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