Pub giant JD Wetherspoon has issued a profit warning after experiencing “higher than anticipated” operational costs during the second quarter, with financial headwinds continuing to hamper group performance despite a 6.1 percent increase in like-for-like sales over the festive period.
JD Wetherspoon has warned that “higher than anticipated” operational costs could impact half-year profit, despite a strong festive season delivering a 6.1 percent increase in like-for-like Q2 sales across its estate of 794 pubs.
Though sales for the three week Christmas period rose 8.8 percent year-on-year and jumped 4.7 percent for the 25 weeks to 18 January, chair Tim Martin said that a multi-million pound increase in costs would hit the company’s bottom line.
“We are pleased with the sales growth in the financial year, and with the increased momentum in the second quarter,” Martin told investors. “Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by £45m in the first 25 weeks.”
“Profits in the first half are likely to be lower than the comparable period in the previous financial year. If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25.”
On a sectional basis, gaming machine sales witnessed the largest growth during the first half of the year, rising 9.1 percent, while bar sales rose 6.9 percent, and food sales rose 1.3 percent. Hotel room sales increased by just 0.7 percent during the same period.
In the year to date, JD Wetherspoon launched six new pubs, including sites in major transport hubs London Bridge and Paddington, with plans currently underway to bring the total number of openings during the current financial year to 15, including a new venture in Spain’s Alicante airport.
Can Spoons weather the storm?
Tim Martin said… “Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by £45m in the first 25 weeks…
