LONDON (ShareCast) - (Sharecast News) - JD Wetherspoon updated the market on its trading for the 14 weeks ended 5 November, reporting a 9.5% increase in like-for-like sales compared to the same period last year.
The FTSE 250 company said the growth was reflected across various segments, with bar sales rising by 10.7%, food sales by 8.2%, and fruit machine revenue by 10.0%.

Hotel room sales also saw a commendable increase of 6.2%, and in total, year-to-date sales had grown by 8.1%.

Notably, JD Wetherspoon said it had outperformed the industry average, with the 'Coffer CGA Business Tracker' reporting that in September, the industry had like-for-like sales growth of 5.9%, whereas Wetherspoon achieved a substantial 9.4%.

That, the board noted, marked the 13th consecutive month that the company had outperformed the tracker.

Regarding financing, on 22 August, the company completed the disposal of all its interest rate swaps, resulting in proceeds of £14.8m.

At the same time, JD Wetherspoon fixed interest rates on £200m of borrowings from 23 August to 6 February at a rate of 5.665%.

On 25 September, it fixed interest rates on £400m of borrowings from 6 February 2025 to 6 February 2028 at a rate of 4.225%.

The company expected interest costs for the 2024 financial year to be about the same as in the prior year, excluding IFRS 16 notional interest, which stood at £51m.

In terms of property, Wetherspoon said it had expanded its reach by opening a new pub at London's Heathrow Airport.

Additionally, four pubs were sold, and six leasehold pubs were surrendered to the landlord during the period.

The company currently operates a trading estate of 816 pubs.

"Sales in the first 14 weeks of the financial year have continued the pattern of gradual improvement which has followed the ending of lockdowns and restrictions," said chairman Tim Martin.

"Inflationary pressures have eased, but energy costs, in particular, remain at far higher levels than pre-pandemic, putting pressure on suppliers and the wider economy.

"The company is increasing investment in existing pubs in the current financial year to approximately £70m."

Martin said areas of investment included new staff rooms, changing rooms, glass racks above bars to cater for increased usage of brewers' 'branded' glasses, and air conditioning.

"The company currently expects an outcome for the financial year in line with market expectations, and will provide further updates as the year progresses."

Reporting by Josh White for Sharecast.com.

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