Wetherspoon sales slow amid rising costs
Tim Martin, Wetherspoon chairman, said the company remains ‘cautiously optimistic’ about future prospects
JD Wetherspoon has reported sales growth amid “substantially higher” costs, with like-for-like sales dropping 1.1% in the five weeks to 6 November 2022 compared to pre-pandemic levels in 2019, having increased by 1.5% in the previous nine weeks.
October has been a “slightly slower” month following rising costs of labour, food and repairs, despite trading being broadly in line with expectations.
Meanwhile, like-for-like sales in the first 14 weeks of the financial year (FY22) were up 9.6% year-on-year and 0.4% higher than the same period in FY19.
For the first nine weeks of FY22, sales grew 10.1% year-on-year and were 1.5% above the same period in FY19, while sales also grew 8.9% for the last five weeks to 6 November 2022.
Wetherspoon recently put 32 pubs from its 847-strong estate on the market, with plans to add a further 7 pubs to the disposal list this week. The chain also expects to pay an extra £10m in interest on net debt of £745m next year.
Tim Martin, Wetherspoon chairman, said: “Sales have improved since the ending of restrictions in the early part of this calendar year and are considerably above the same period in the last financial year. The company reported a return to positive cash flow in FY22 and anticipates a positive cash flow in the current year.
“In my comments on the full year results released on 7 October 2022, I set out various threats to the hospitality industry and these continue to apply. Those caveats aside, in the absence of further lockdowns or restrictions, the company remains cautiously optimistic about future prospects.”
