British pub group JD Wetherspoon Plc on Friday 24 March posted a return to half-year profit and said sales in recent weeks have topped pre-pandemic levels.
Details
"Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic," chairman Tim Martin said in a statement.
Martin said he was "cautiously optimistic" on the company's outlook for the year and the years ahead.
British inflation unexpectedly rose to 10.4% in February, pushed up by higher food and drink prices in pubs and restaurants.
"We expect 2023 to be a grind for pubs, with companies and consumers facing cost headwinds and a sluggish economy," analysts at Stifel said in a note.
The pub chain, sometimes referred to "'Spoons", is priced lower than others in Britain. Its shares were up 4% in early trade.
Profit And Sales
It reported a half-year profit of £4.6 million versus a loss of £21.3 million in a year earlier.
It said sales in the seven weeks to 19 March were 9.1% above 2019 levels and 14.9% above a year earlier.
The above news was followed by the following update:
UPDATE 3-Wetherspoon Back In Profit As Britons' Lap Up Welsh Vodka, Cocktails And Ale
Britons' taste for cocktails, Welsh vodka and real ale helped pubs group JD Wetherspoon return to profit in the first half of its financial year, boosting its shares.
Wetherspoon was "cautiously optimistic" on its outlook for the year ahead despite high inflation, which has pushed up labour, food and energy costs for British pubs and restaurants.
The company's shares rose as much as 12% to a near nine-month high.
"Cocktails are selling well. Au Vodka from Swansea of all places is more fashionable than David Beckham," Chairman Tim Martin told Reuters on Friday 24 March, referring to the British vodka brand, based in Swansea in Wales.
Martin also said older customers, who had previously not been going out as much, had "returned from hibernation".
He said ales such as Abbott and Doom Bar were popular among customers, while Brewdog's Punk IPA was doing very well.
The pub chain, sometimes referred to as "Spoons", is known for its competitive prices.
"Its tried and tested value offer is holding it in good stead and there's no sign of punters deserting the boozers despite the continuing cost-of-living crisis," Derren Nathan, analyst Hargreaves Lansdown said in a note.
British inflation unexpectedly rose to 10.4% in February, pushed up by higher food and drink prices in pubs and restaurants.
Wetherspoon reported profit of £4.6 million in the 26 weeks ended 29 January versus a loss of 21.3 million in a year earlier.
It said sales in the seven weeks to March 19 were 9.1% above 2019 levels and 14.9% above a year earlier.
Wetherspoon Gives Lowdown On New Meals At Its Irish Pubs
All of the above news follows our recent feature outlining that in an effort to persuade customers back into pubs post-lockdown, Wetherspoon recently launched a range of new meals across its nine Irish pubs. In the feature, we get the lowdown on what this means, and why.
You can read the feature at the below link.
Read More: Wetherspoon Gives Lowdown On New Meals At Its Irish Pubs
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