Wetherspoons hails 'record' sales, highlights rising costs
By Michele Maatouk
Date: Wednesday 06 Nov 2024
(Sharecast News) - Pub chain JD Wetherpoon said on Wednesday that it was "confident of a reasonable outcome for the year" as it reported record sales but highlighted rising costs.
In an update for the 14 weeks to 3 November, the company said sales like-for-like sales rose 5.9% on the same period a year earlier. Bar sales were up 5.7%, food by 5.7% and slot/fruit machines by 13.5%. Hotel room sales dipped 2%.
Wetherspoons said total sales have grown 4.6% in the year to date, less than LFL sales, as a result of a small number of pub disposals.
The chain also said that following the Budget last month, taxes and business costs are expected to rise by around £60 million, on an annualised basis, in calendar year 2025, including an estimated 67% increase in national insurance contributions.
Chairman Tim Martin said: "The company achieved record sales in the 14-week period and staff retention continues to be at high levels.
"Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the budget.
"All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.
"The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs."
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10 Lower Thames St,
London EC3R 6EN