Wetherspoon's like-for-like sales rise

By M&C Report

- Last updated on GMT

Related tags: Like-for-like sales, Taxation, Tax, Jd wetherspoon

JDW grew its sales but issued warning over operating margin
JDW grew its sales but issued warning over operating margin
JD Wetherspoon has reported an 8% rise in like-for-like sales in the 11 weeks to 13 January but said it expects operating margin for H1 to be c8.2%, roughly 1.1% lower than in the previous financial year, due to rising costs.

Total sales for the managed pub operator grew 11% in the period. In the year to date (24 weeks to 13 January), like-for-like sales grew 7.6% and total sales increased 11.2%.

JDW has opened five pubs so far this financial year and said it has 12 under development. The company reiterated previous estimates that it will open c25 this financial year.

The firm said: "We currently expect the operating margin for the half year ending 27 January 2013 to be around 8.2%, approximately 1.1% lower than the last financial year, due to slightly higher than expected increases in costs in areas such as tax, utilities, labour and bar and food supplies, combined with increased marketing costs.

"We anticipate the company’s corporation tax rate for this financial year to be around 27.5%."

The company said there has been no significant changes in its overall financial position since the publication of its full-year report and accounts on 16 October.

JDW said: "Our sales, profit and cash flow continue to be resilient, in spite of the continuing taxation and regulation burden on the pub industry and the on-going pressure on consumer’s disposable incomes. The board expects a reasonable outcome for the current financial year."

Related topics: JD Wetherspoon


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