JD Wetherspoon on track for record year as Q3 sales rise by 9.1%
The company’s year-to-date sales also increased by 6.4% compared to last year
JD Wetherspoon has said it is on course for record sales this year as sales rose by 9.1% in the 13 weeks to 30 April 2023, compared to the same period in the last full financial year before the pandemic.
It comes as sales reported in Easter week were the highest ever for the company, which noted that sales for the current financial year are likely to be a record for the group.
Compared to FY22, like-for-like sales increased by 12.2% in the third quarter and by 12.7% year-to-date. The last two weeks have included bank holiday weekends; the first May bank holiday weekend was exceptionally strong, including the company’s “ busiest-ever Saturday” while the second was “noticeably quiet”.
During Q3, net debt was £738m, approximately £67m lower than the reported interim results for FY20, immediately before the pandemic. Since then, the company has invested £185m in new pubs.
In the last quarter, the company opened one pub and sold, closed or surrendered to the landlord 10 pubs (year-to-date 21 pubs). There was a net cash inflow of £4.7m from the 21 disposals.
JDW currently has a trading estate of 834 pubs, with 30 trading pubs remaining on the market, or under offer.
Looking ahead, the company expects profits in the current financial year to be towards the top of market expectations.
The chairman of JD Wetherspoon, Tim Martin, said: “Sales in the last quarter have continued their positive momentum, although inflation, especially in labour, energy and food costs, remains a more intractable issue.
“In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations. A lack of understanding, among some senior politicians, about the need to encourage a successful free market economy, presents a real threat to the future prosperity of the country.”
