Third Quarter Trading Update
Third quarter like-for-like sales flat at 0% due to Easter timing and extreme heat, but year-to-date growth of 2.2% maintained.
- Year-to-date like-for-like sales growth 2.2%
- Q3 like-for-like sales growth 0.0%
- Total sales growth year-to-date 1.3%
- Food like-for-like sales Q3 (2.4)%
- Drink like-for-like sales Q3 2.6%
- Cost inflation expectations full year c.£120m
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Sales
While challenging weather conditions moderated third quarter trading against strong comparatives, year-to-date like-for-like sales growth of 2.2% remains robust. Performance in the quarter was affected by the timing of Easter, which fell in the third quarter last year, reflecting an approximate 0.8ppt headwind to like-for-like sales growth. Several extended periods of extreme heat also had an adverse impact on trading. Pubs and other drink-led brands have generally performed well, assisted on selected days by the football World Cup. In contrast, the exceptional heat adversely affected our food-led businesses, particularly Toby Carvery and Miller & Carter.
Like-for-like sales:
| Weeks 1-15 Q1 | Weeks 16-28 Q2 | Weeks 1-28 H1 | Weeks 29-42 Q3 | Weeks 1-42 YTD | |
|---|---|---|---|---|---|
| Food | 5.1% | 3.0% | 4.1% | (2.4)% | 2.0% |
| Drink | 3.8% | 0.7% | 2.4% | 2.6% | 2.5% |
| Total | 4.5% | 1.8% | 3.3% | 0.0% | 2.2% |
Total sales in the year to date have increased by 1.3%.
Investments
Given the strength of our investment programme, we have accelerated the number of projects this year and so far, we have completed 181 conversions and remodels. Additionally, we have acquired 10 new sites, 2 leasehold sites in Germany and 8 freeholds in the UK, in addition to the purchase of 4 freehold interests in existing sites. We continue the rollout of initiatives to reduce energy usage, such as solar panels and sensors.
Outlook
Cost inflation expectations remain unchanged at c.£120m this financial year, reflecting the challenge facing the whole sector. However, the actions taken across the business, together with the benefits of our Ignite programme and investment strategy, provide confidence in our ability to deliver a full-year outturn for the current year in line with consensus expectations.
Phil Urban, Chief Executive, commented:
"Our business has performed with resilience during a quarter characterised by unusual weather patterns. The strength of our diversified portfolio has moderated the impact of external factors and together with the continued success of our investment programme and Ignite initiatives we remain confident in delivering our full-year expectations."
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