Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — HY 2022 Earnings Presentation
23 slides from Mitchells & Butlers's earnings presentation, Jun 12, 2022
Slide 1: Half Year Results 2022
Mitchells . &Butlers ells utler Half Year R Mitch
Slide 2: Financial Review HY 2022
Financial Review HY 2022 Tim Jones Chief Financial Officer –2–
Slide 3: Income Statement (before adjusted items)
Income Statement (before adjusted items) HY 2022 HY 2021 £m £m Revenue 1,159 219 Operating costs (1,039) (343) Operating profit 120 (124) Interest (63) (67) Pensions finance charge (1) (1) Profit /(loss) before tax 56 (192) Operating margin 10.4% (56.6%) Profit / (loss) per share 7.6p (31.8)p –3–
Slide 4: Like-for-like sales vs. FY19
Like-for-like sales vs. FY19 • Food continues to performed better than drink, although VAT reduction now expired • Suburban and rural areas have generally outperformed larger city centres • Sales driven by spend per head growth and VAT outweighing volume decline • Like-for-like sales growth for 5 we
Slide 5: Diverse portfolio of brands and locations
Diverse portfolio of brands and locations • The M&B brands cover a wide a wide range of occasions, locations and price points –5–
Slide 6: Cost inflation is high and uncertain
Cost inflation is high and uncertain £m £m FY22 vs. FY19 (three years) FY23 vs. FY22 • Anticipated cost headwinds before major mitigation activity on cost base of £1.8bn • FY22 anticipated to be c.11.5% increase over three years from FY19 (3.7% compound) • FY23 expected to be c.6% but energy price v
Slide 7: Cashflow / debt
Cashflow / debt HY 2022 HY 2021 £m £m Operating cash flow 172 (149) Capital expenditure (58) (16) Lease principal and interest (44) (27) Net interest (50) (53) Tax and other 2 - Issues of shares - 341 Net repayment of facilities - (61) Net cash flow before bond amortisation 22 35 Mandatory bond amor
Slide 8: Pensions update
Pensions update • Next triennial valuation as at 31 March 2022 • Expected to show an improved position vs previous deficit of £293m (as at 31 March 2019) MAIN PLAN (c.80% liabilities) - Close to fully hedged for interest rate and inflation risk - Limited exposure to broad markets (e.g. under ~10% di
Slide 9: Summary
Summary • Strong sales recovery across the first half despite Omicron • Costs: - Inflation above trend especially in food, energy and labour - Outlook volatile and uncertain • Well placed to mitigate costs and to manage continuing uncertainty ahead - Ignite programme of self help - Strengthened bala
Slide 10: Phil Urban, Chief Executive Officer
Phil Urban Chief Executive Officer – 10 –
Slide 11: Trading vs. market
Trading vs. market • Strong outperformance of restaurant segment • Comfortable outperformance of pub restaurants • Underperformance in pubs driven by reduced exposure to the high energy, youth market – 11 –
Slide 12: Sales growth ex. VAT
Sales growth ex. VAT • Encouraging sales growth over the last 5 weeks of 2.2%, at full rate of VAT • Continued trajectory of recovery • Sales growth driven by site conversions, guests laddering up to more premium products and adding a starter or dessert • Focus on providing value for money experienc
Slide 13: Supply
Supply Pub and restaurant closures since March 2020 - 6.4% • Opportunity to gain market share through superior customer experience • Encouraged by consistently strong guest feedback scores • Clear correlation between guest feedback and like- for-like sales growth – 13 –
Slide 14: Our strategic priorities
Our strategic priorities Build a more Instil a more Drive an balanced business commercial culture innovation agenda - Brand propositions - Profitable sales - Build on technology investment - Conversion to successful formats - Core operational drivers - Digital marketing - Upgraded amenity in core -
Slide 15: Capital programme
Capital programme • Target reinvestment every 6-7 years • New investment template - Browns in suburbia • Completing detail cost engineering to help offset project cost inflation Browns Manchester – 15 –
Slide 16: Innkeepers Collection
Innkeepers Collection • Extract value of unused upper floors and vacant land by exploring Innkeepers Collection and third party opportunities • Accreditive to ROA and property valuation • Continued focus on investment programme to keep the estate well positioned in a challenging trading environment
Slide 17: Selection of Ignite initiatives
Selection of Ignite 3 initiatives SALES COST REDUCTION Delivery Rollout Maintenance Process Table Management Menu & Product Digital Rewards Own Channel Delivery Food waste Energy Recycling Order at Table SUSTAINABILITY Auto-Order Auto-Scheduling TeamPlan App PRODUCTIVITY Does not include all program
Slide 18: Sustainability
Sustainability Respect for the planet Pride in our offers Care for communities MAKING MOMENTS MATTER We are committed to We strive to deliver People are central to our reducing our emissions, responsibly sourced business, we are focused tackling waste and products and menu on supporting our teams pr
Slide 19: Summary
Summary • Remain focused on our strategic priorities to combat challenging trading environment • Ensure we are in the strongest position to capitalise when the market becomes buoyant again • Pleased with the progress made in the year to date • Capital and Ignite programmes will deliver continued mom
Slide 20: Questions
Tht Questions, |
Slide 21: Half Year Results 2022 Supplementary Slides
Half Year Results 2022 Supplementary Slides – 21 –
Slide 22: H1 2022 – Outlet reconciliation
H1 2022 – Outlet reconciliation Total Managed1 Franchised Total MAB Opening outlets (start FY 2022) 1,660 72 1,732 Transfers (2) 2 - Disposals (4) (2) (6) Acquisitions - - - Closing outlets (end H1 2022) 1,654 72 1,726 Notes: 1. H1 2022 closing managed total includes 13 non-trading sites. 2. Lodges
Slide 23: H1 2022 – Securitisation profile
H1 2022 – Securitisation profile – 23 –