Mitchells & Butlers Q1 sales underpinned by strong Christmas

(Sharecast News) - Pub group Mitchells & Butlers reported a jump in first-quarter sales on Wednesday as it hailed a "very strong" performance over the festive period. In an update for the 15 weeks to 11 January, the company said like-for-like sales grew 3.9%, remaining "well ahead" of the market, despite the impact of very cold and stormy weather over the last couple of weeks.

In the core three-week festive period, LFL sales rose 10.4%, "built on numerous record sales performances through the estate and the brand portfolio," M&B said.

Chief executive Phil Urban said: "We are delighted to have delivered another very strong festive trading period, with some excellent performances across our brand portfolio. Growth was particularly strong on festive key dates supported by volume growth, and with record sales on Christmas Day. Cold and stormy weather over recent weeks has subsequently had a material adverse impact on trading but we remain confident in the strength of underlying sales growth.

"Our focus remains on the effective execution of our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. We continue to leverage the strength of our diverse portfolio of established brands and enviable estate locations and believe we are well positioned to further grow profitability and market share in the year ahead."

At 0920 GMT, the shares were up 3.5% at 235.99p.