M&B’s Q1 trading performance was in line with our expectations. The group’s lfl sales were quite strong (led by the food segment) until the surge in COVID-19 infections in December 2021. Despite a weak show during the Christmas trading period, we reiterate that the publican is well placed to clock top-line growth as the pandemic subsides. Cost inflation is also a headwind but M&B is better positioned to bear the brunt due to its premium positioning. Positive recommendation is reconfirmed.
14 Jan 2022
Q1 trading mired by weak Christmas and inflationary headwinds
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Q1 trading mired by weak Christmas and inflationary headwinds
Mitchells & Butlers plc (MAB:LON) | 226 0 0.0% | Mkt Cap: 1,351m
- Published:
14 Jan 2022 -
Author:
Nishant Choudhary -
Pages:
3
M&B’s Q1 trading performance was in line with our expectations. The group’s lfl sales were quite strong (led by the food segment) until the surge in COVID-19 infections in December 2021. Despite a weak show during the Christmas trading period, we reiterate that the publican is well placed to clock top-line growth as the pandemic subsides. Cost inflation is also a headwind but M&B is better positioned to bear the brunt due to its premium positioning. Positive recommendation is reconfirmed.