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Mitchells & Butlers, the parent company of All Bar One, has posted half-year profits that have outpaced market expectations, despite facing significant cost pressures. The firm, which
also owns Harvester, announced to the markets this morning that its total revenue for the 28 weeks ending April 12 reached £1,454m, marking a four per cent increase year on year, as reported
by City AM. Operating profit saw a 10 per cent rise to £181m, while pre-tax profit surged by 24 per cent to reach £134m. CEO Phil Urban attributed Mitchells' strong performance to cost
efficiencies and a commitment to "maximising the guest appeal" across its diverse brand portfolio. The company managed to outdo the broader market by over three per cent in the
first half of the year, propelled by growth in restaurant sales. This follows a trend of better-than-expected trading results from major British pub chains. ALL BAR ONE OWNER LOOKS TO CUT
COSTS Despite Greene King's struggles this year, other leading chains have successfully weathered the cost-driven hospitality crisis predicted following Labour's Autumn budget last
year. Pub operator Marston's reported a 20 per cent boost in half-year profit to £60.3m, while JD Wetherspoon revealed a 4.2 per cent increase in like-for-like sales since the start of
2025. Although Mitchells & Butlers absorbed a £100m blow from higher national insurance contributions and the increased minimum wage – equivalent to around five per cent of its cost
base – it assured that the business "remains in good shape." The firm anticipates a further rise in costs next year due to the annualisation of labour cost increases, as well as
hikes in food costs, particularly meat. "As we enter the second half of the year, with increased employer national insurance contributions, we remain focused on... driving further cost
efficiencies and increased sales," stated Urban. "Despite the likely increase in cost pressures next year, we are confident that our unwavering focus on delivering our strategic
priorities will generate further value from our well-invested and strategically located estate portfolio and compelling customer offers," he added. Mitchells & Butlers is
forecasting profits at the top end of consensus for the current year. LIKE THIS STORY? WHY NOT SIGN UP TO GET THE LATEST BUSINESS NEWS STRAIGHT TO YOUR INBOX.
