M&B’s trading performance for Q1 FY22/23 was stronger than our expectations. The group’s lfl sales grew by 10.4% yoy, with strong contributions from both the food and drinks businesses. Although the recent five weeks (festival period) witnessed stronger momentum, this was on a softer comparable base. While we expect M&B’s lfl growth to remain ahead of that of the competition, profitability is likely to be under increased pressure as inflationary headwinds are unlikely to ease in the near-term. W ....
