JD Wetherspoon PLC (LSE:JDW) swung back into profit at the half-year stage despite “ferocious” inflationary pressures as sales recovered from their pandemic lows.
The pub chain’s gregarious chair Tim Martin said: “Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic, rather than a consequence of Brexit, as many commentators have argued.”
He highlighted inflationary pressures in energy, food and labour and said a fall in inflation would be of “great benefit”.
"Having experienced a substantial improvement in sales and profits, compared to our most recent financial year, and with a strengthened balance sheet, compared both to last year and to the pre-pandemic period, the company is cautiously optimistic about further progress in the current financial year and in the years ahead," he added.
Martin also used the statement to highlight disparities in the treatment of pubs in relation to business rates in Scotland, the differential in tax treatment on alchohol between pubs and supermarkets and even ventured into the debate over the handling of the Covid crisis.
For the 26 weeks to 29 January 2023, the pub operator said like-for-like sales were up 13.0%, compared to the six-month period ended 23 January 2022 and were 14.9% higher for the first seven weeks of the second half of the financial year, compared to the same period in 2022.
Revenue rose to £916.0mln in the period compared to £807.4mln a year ago and a pre-tax profit of £4.6mln was achieved compared to a loss of £26.1mln last time.
Earnings per share totalled 29.4p compared to a loss per share of 19.7p in 2022 and the group passed on the dividend.