JD Wetherspoon expects profits to hit top-line as sales rise 5.2%
The company had opened two pubs and either sold or surrendered to the landlord a total of 18 pubs in the year to date
JD Wetherspoon expects profits to be towards the top of market expectations for 2024, as like-for-like sales rose by 5.2% in the 13-week period to 28 April.
Year-to-date sales also rose 8.3% despite this year’s bank holiday (6 May) being a week later.
Total sales still increased by 3.3% in the quarter and by 6.5% in the year-to-date.
The company had opened two pubs and either sold or surrendered to the landlord a total of 18 pubs in the year-to-date.
Most of the pubs were “smaller or older”, or in places where JD Wetherspoon currently operates a second pub in “reasonably close proximity”.
As a result, there was a net cash inflow of £6.8m from the 18 disposals.
Some 17 trading pubs remain on the market, or are under offer. The company currently has a trading estate of 809 pubs.
As of 28 April 2024, JD Wetherspoon’s net debt stands at £685m.
According to Tim Martin, sales in the period continued the steady recovery from the pandemic.
Martin said: “Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade. The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.
“Also selling well among younger generations are Au Vodka from Swansea and XIX flavoured vodkas, the latter promoted by the hugely popular Sidemen. Wine has been on the comeback trail, with Villa Maria Sauvignon Blanc, from New Zealand, popular among Wetherspoon representatives of the chattering classes.”
He added: “Sales of Lavazza coffee are also increasing. Free refills are thought to be responsible for spontaneous exhibitions of breakdancing among retired customers.”
