JD Wetherspoons chairman Tim Martin said the group had managed to maintain its competitive advantage despite cost pressures. Photo: Heathcliff O' Malley
JD Wetherspoon reported record sales after drinkers looked for more affordable pints due to the cost of living crisis.
The pub chain said revenue rose 10.6% last year and reached £1.9 billion as it battled inflationary pressures and posted its first profit since the pandemic.
Tim Martin, chairman of Wetherspoons, said the success was due to its commitment to keeping prices low , despite rising costs.
He said: “Prices have risen but the gap between Wetherspoon and competitors has remained or widened. Competitiveness has been maintained.»
The chain's pre-tax profits rose to £42.6 million for the year, compared with a loss of £30.4 million in 2022.
However, they — remained below pre-pandemic levels of £102.4 million.
This saw the company's shares fall 4% on Friday morning.
Mr Martin used Friday's results as another opportunity to criticize Covid-19 restrictions which have forced the closure of his pubs across the country.
However, sales at Wetherspoons' 800 UK pubs have since recovered, with drinks up 9% and food up 17.7%. Sales of slot machines and fruit machines also rose by 26.4%.
Wealth Club analysts said: “Rising energy and food prices over the last 18 months have been a major headache for Wetherspoons and have put pressure on margins.
“However, inflation now appears to be slowing, which should bode well for profits in 2024.
“Despite rising costs, Wetherspoons is committed to keeping prices low. This helps maintain customer loyalty, as evidenced by strong growth in like-for-like sales. These value attributes are critical and should mean the group is better positioned than many of its peers to weather any downturn in consumer spending.»
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