Wetherspoons says trading in line as sales rise 11%

12th Jul 2023 07:37

(Sharecast News) - Shares in pub chain JD Wetherspoon surged as it held annual profit guidance on the back of an 11% rise in recent sales as customers looked for value amid soaring alcoholic drink and food prices.

Compared to full-year 2022, like-for-like sales increased by 11.5% in the fourth quarter to date and by 12.9% in the year to date.

"The company anticipates an improved outcome for the next financial year, and anticipates an outcome for the first half of FY24 approximately in-line with the second half of FY23," said chairman Tim Martin.

Wetherspoon, famed for its discounted alcohol and food offering, said 22 of its pubs remain up for sale or under offer, after shutting 28 sites in the past year, with those earmarked for disposal in locations with another of the estate in the area.

Martin said it was a "misinterpretation" to suggest the move was down to difficult trading conditions and claimed energy cost pressures appeared to be easing.

Net debt was now £688m, down from £920m a year earlier.

Richard Hunter, head of markets at Interactive Investor said: "From a broader perspective, the economic outlook for the UK is another potential headwind. Wetherspoons has been able to pass on some of the inflationary costs without threatening its appeal, but equally it will be mindful that this particular strategy needs to be reigned in where possible in order to maintain its no-nonsense and no-frills value offering."

Reporting by Frank Prenesti for Sharecast.com