Mitchells & Butlers shares slump as sales slow in Q2

(Sharecast News) - Shares in pub operator Mitchells & Butlers slumped on Thursday as it reported a slowdown in second quarter sales as consumers reined in spending.

Sales growth in the second quarter reduced to 1.8%, reflecting a strong performance comparative, which benefitted from favourable weather, the company said. Like-for-like sales grew by 3.0% in the 30 weeks to 25 April and by 1.1% in the most recent three-week period.

However, it added that broader macroeconomic conditions "appear to have had a modest impact on discretionary spending during the period".

"The outlook overall ... remains uncertain and will depend on a number of factors including consumer spending power and confidence, global political developments, supply chain disruptions and government policy."

Pre-tax profits for the six months to April 11 rose to £143m from £139m, with sales up slightly to £1.49bn from £1.45bn.

Reporting by Frank Prenesti for Sharecast.com

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