20th Jan 2016 07:45
LONDON (Alliance News) - JD Wetherspoon PLC on Wednesday reported growth in sales in the second quarter of its financial year, but warned that profit for the full-year will be at the lower end of analyst expectations.
The pub company said total sales in the 12 weeks to January 17 grew 6.3% year-on-year, as like-for-like sales rose 3.3%. In the 25 weeks to the same date, total sales increased 6.1% and like-for-likes were up 2.8%.
Wetherspoons said it expects its operating margin for the half-year ending January 24 to be around 6.3%, which is 1.1% lower than the same period last year, which it said reflects increases in starting rates for hourly paid staff.
"Like-for-like sales have improved in the second quarter so far. However, as indicated in our November trading update, increased labour costs will be an important factor in the outcome for this financial year. Our current view is profits for this year are likely to be towards the lower end of analysts' expectations," Chairman Tim Martin said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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