M&B Q4 trading performance was in line with our expectations. The lfl sales grew 1.5% vs FY19 levels. However, management has cautioned against rising cost pressure, especially due to energy expenditure, expected to rise further in FY23. Although M&B looks relatively better placed vs close competitor JDW, we expect the company’s near-term EPS to come under increased pressure. We will trim our financial estimates but maintain that the stock’s valuation is quite attractive at the current levels.
30 Sep 2022
Decent Q4 sales; rising cost pressure dents investor sentiment!
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Decent Q4 sales; rising cost pressure dents investor sentiment!
Mitchells & Butlers plc (MAB:LON) | 235 0 0.0% | Mkt Cap: 1,406m
- Published:
30 Sep 2022 -
Author:
Nishant Choudhary -
Pages:
3
M&B Q4 trading performance was in line with our expectations. The lfl sales grew 1.5% vs FY19 levels. However, management has cautioned against rising cost pressure, especially due to energy expenditure, expected to rise further in FY23. Although M&B looks relatively better placed vs close competitor JDW, we expect the company’s near-term EPS to come under increased pressure. We will trim our financial estimates but maintain that the stock’s valuation is quite attractive at the current levels.