Wetherspoon sales increase but operating profit falls

04 May 2016 by Katey Pigden

Pub operator JD Wetherspoon saw its like-for-like and total sales increase for the 13 weeks to 24 April 2016, but its operating profit was weaker year-on-year.

The company said like-for-like sales increased by 3.8% with total sales up 5.5%, which was in line with the six-week period reported in the firm's recent interim results.

For the nine months to 24 April, like-for-like sales increased by 3.2% and total sales were up 5.9%.

The firm's operating margin was 6.4%, compared with 7.5% in the same 13 weeks last year.

It attributed the margin squeeze to the increase in starting rates for hourly paid staff, which came into force in August 2015.

JD Wetherspoon opened eight new pubs since the start of the financial year and has closed 19, of which eight have been sold.

It said it expected to open 16 new pubs in this financial year and there will be around £5m of exceptional non-cash losses, associated with the disposal programme.

It estimates net debt at the end of the financial year will be £650m.

Chairman Tim Martin said: "Sales during the quarter have continued at approximately the same levels reported on 11 March 2016 in our interim statement. We are still aiming for a reasonable outcome for the financial year, before the impact of the previously announced £3.8m property gain realised in the first six months."

2016 could be the year Wetherspoon's property portfolio shrinks for the first time >>

Wetherspoon's Tim Martin renews call for the UK to leave the EU >>

Rise in staff pay expected to dent profits at JD Wetherspoon >>

*Looking for a job? See all the current pub and bar vacancies available with The CatererFONT >>*