6th May 2015 07:02
LONDON (Alliance News) - JD Wetherspoon PLC Wednesday said its like-for like sales in the 13 weeks to April 26 increased by 1.7%, while total sales were up by 5.8%, but its operating margin fell from the corresponding period last year.
In a statement, the pub chain said that its operating margin in the 13 weeks to April 26 was 7.5%, compared with 8.0% in the corresponding period of the prior year. It expects its operating margin to be in the region of 7.3% to 7.7% for the full-year ending in July.
The pub chain said like-for-like sales increased by 3.6% and total sales increased by 7.9% in the 39 weeks to April 26.
The pub chain said expectations for the full-year are unchanged but said that it is "difficult to quantify" what will happen in the next financial year.
JD Wetherspoon had previously said that a strong second half to its previous financial year will make it hard to improve on that showing in the current year. It also reiterated that pubs are at a disadvantage to supermarkets due to levies and taxes imposed on them.
"For the next financial year, there are a number of factors which are likely to influence our trading performance, although they are difficult to quantify at this stage. Positive aspects include an increase in our pub numbers, stable utility prices and slightly lower interest rates. Other trends include increased competition from supermarkets and restaurant groups, together with additional staff and repair costs. We will provide updates, when appropriate, on these, as next year progresses," JD Wetherspoon said.
By Samuel Agini; [email protected]; @samuelagini
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