JD Wetherspoon sees FY profits at top of market forecast

(Sharecast News) - Pub group JD Wetherspoon said on Wednesday that full-year profits were set to be towards the top of market expectations as it reported a jump in third-quarter sales, boosted by sales of traditional ales and Guinness and caffeine-fuelled breakdancing pensioners. In the 13 weeks to 28 April, like-for-like sales rose 5.2% on the same period a year earlier, with year-to-date LFL sales up 8.3%.

Total sales were 3.3% higher in the quarter and 6.5% firmer year-to-date.

Wetherspoons pointed out that the last week of the period last year included a bank holiday weekend, whereas this year the bank holiday fell a week later. Excluding that week, LFL sales for the first 12 weeks of the period rose 6%.

Chairman Tim Martin said sales in the period continued the steady recovery from the pandemic.

"Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade," he said.

"The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.

"Also selling well among younger generations are Au Vodka from Swansea and XIX flavoured vodkas, the latter promoted by the hugely popular Sidemen."

Martin said sales of Lavazza coffee were also increasing. "Free refills are thought to be responsible for spontaneous exhibitions of breakdancing among retired customers," he said.

In the year to date, the pub chain has opened two pubs and sold or surrendered 18 to the landlord. Most of the pubs were smaller and older, or where the company has a second pub in reasonably close proximity, it said.