Wetherspoon sees FY at top end of expectations

10th May 2023 07:43

(Sharecast News) - Pub chain JD Wetherspoon said it expected annual earnings to be at the top end of expectations and tipped 2023 to be a record year for sales.

The company said like-for-like sales increased by 9.1% in the 13 weeks to April 30, compared to the same period in 2019 before the Covid pandemic.

Sales in Easter week were the highest-ever for the company, with sales in the current financial year "likely to be a record", Wetherspoons said in a trading update.

Compared to FY22, like-for-like sales increased by 12.2% in the third quarter and by 12.7% in the year to date.

Trading over the last two bank UK holiday weekend had been mixed, with the May Day "exceptionally strong" - including the chain's busiest-ever Saturday, while the second, for the coronation of King Charles, was slightly less strong, "with a noticeably quiet Saturday" as people stayed home to watch the event.

"Lockdowns and associated restrictions have had more profound and longer-lasting consequences than most economists, politicians and commentators predicted," said outspoken company chairman Tim Martin.

"Sales in the last quarter have continued their positive momentum, although inflation, especially in labour, energy and food costs, remains a more intractable issue."

"The company expects profits in the current financial year to be towards the top of market expectations."

Reporting by Frank Prenesti for Sharecast.com