JD Wetherspoon plc has announced an update on current trading showing strong sales but increased costs.
For the first eleven weeks of the second quarter (to 13 January 2013), like-for-like sales increased by 8.0%. Total sales increased by 11.3%.
In the year to date (24 weeks to 13 January 2013), like-for-like sales increased by 7.6% and total sales increased by 11.2%.
The operating margin for the half year ending 27 January 2013 is expected 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.
Property
5 new pubs have been opened so far this financial year, and there are 12 sites currently under development. Approximately 25 pubs will be opened in the full financial year.
Outlook
Sales, profit and cash flow continue to be resilient, in spite of the continuing tax and regulation burden on the pub industry and the ongoing pressure on consumer’s disposable incomes. The Board expects a reasonable outcome for the current financial year.