6th Nov 2024 10:32
(Alliance News) - JD Wetherspoon PLC on Wednesday said food and drink sales rose in the 14 weeks to the start of November, but the pub chained warned of rising costs in the coming year, which is blamed on the recent UK government budget.
Shares were up 3.4% to 618.50 pence on Wednesday morning in London.
The Watford-based company, which owns and operates pubs across the UK and Ireland, reported total sales growth of 4.6% in the 14 weeks to this past Sunday, the first quarter plus a week of its 2025 financial year.
Like-for-like sales rose by 5.9%. Wetherspoon said like-for-like sales where higher than total said, due to a small number of location closures. It opened two new pubs in the recent period, while selling off five, banking GBP2.4 million in cash from this.
Bar, food and slot/fruit machines all saw like-for-like sales increases, by 5.7%, 5.7% and 13.5%, respectively. Hotel room sales were down by 2%, however.
Wetherspoon outperformed its competitors in September, with like-for-like sales rising by 5.7%, compared to the industry average increase of 1.7%, it said, citing the CGA RSM hospitality business tracker.
Looking ahead, Wetherspoon said it expects taxes and business costs in the UK to increase by GBP60 million on an annual basis in 2025, due to the government budget announced last week. It also expects a 67% increase in its employer's national insurance contributions.
Wetherspoon Chair Tim Martin said: "The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs. 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"
Wetherspoon said it plans to open nine new pubs this year. It currently has 797 pubs trading.
By Eva Castanedo, Alliance News reporter
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