Pubs chain JD Wetherspoon, known for its cheap pints of beer and simple surroundings, has seen a surge in the sale of whisky and wine.
Helped by a succession of heatwaves, like-for-like sales increased by 5.1% in the 12 weeks to 20 July, compared to the same period last year.
Driving the surge has been demand for spirits and wine, while Guinness sales continue to grow and its well-stocked breakfasts have recovered their popularity.
Chairman Tim Martin, said: “The company has benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported.
“Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels. Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels.
“Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead.
“Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels.”
In the next financial year, the company plans to open 15 managed pubs and about the same number of franchised pubs.
The company currently operates 794 pubs, opening three and selling nine in the period. Five new franchised pubs have opened in the year-to-date, bringing the total to eight.
Eight freehold reversions, where Wetherspoon was previously the tenant, have been acquired in the year-to-date, at a total cost of £19 million.
In the year-to-date, the company has purchased 10,579,081 of its own shares for cancellation at an average price of £6.26 a share.
It currently anticipates year-end net debt to be approximately £720 million, with headroom, under existing facilities, of approximately £220 million.
Market reaction
Chris Beauchamp, chief market analyst at IG, said: “The usual complaints about taxation notwithstanding, this was a very solid set of numbers from ‘Spoons.
“Britons continue to rediscover the joy of a Wetherspoons breakfast, not least because of its competitive price, and with drinks volumes now above pre-pandemic levels the iconic chain seems well-placed to grow further, though an increase in the dividend in due course wouldn’t go amiss.”
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