M&B reports profits of £120m

In the 28 weeks to Saturday to 9 April, the company, which operates across 1,726 sites in the UK and Germany, reported an adjusted operating profit of £120m compared to a loss of £124m for the same period in 2021.

M&B chief executive Phil Urban said: “We are encouraged by the improvement in sales trajectory through the first half of the year, having made progress in each of our markets, with our food-led businesses continuing to lead the way.

“The trading environment remains difficult. Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages, and food.

Efficiency and productivity

“In light of this, our teams have refocused their efforts on driving further efficiency and productivity gains through our Ignite programme.”

M&B saw a strong start to the year with a like for sales growth of 2.7% over the first eight weeks.

This strong start continued until early December, when concerns around Omicron lead to calls for limited socialising, with like for like sales to early January declining by 6%, resulting in a decline of 1.5% over the first quarter.

However, sales strengthened in the second quarter with a like for like growth of 3.8%, bringing to first half growth to 1%.

Pushing forward 

The report took into consideration the reduction of VAT and its subsequent return to 20% as well as periods of closure due to Covid.  

During the period to April 2022, M&B’s capital expenditure totalled £58m, including £56m spent on the purchase of property, £39m of which related to the completion of acquisitions, conversions, and remodels.

Urban added: “We are pushing forward with our capital investment plan which we are pleased to see delivering strong sales uplifts.

“The fundamental strengths of the business remain, and we are well positioned to continue on our trajectory of recovery following the pandemic.”