JD Wetherspoon PLC (LSE:JDW) expects profit for the year to be at the top end of expectations after drinks sales continued to recover from the pandemic over the third quarter.
Sales climbed by 3.3% over the 13 weeks to April, the pub chain reported on Wednesday, while the figure increased by 5.2% on a like-for-like basis.
Chairman Tim Martin said demand for traditional ales gained momentum over the period, having been slow to sell in the aftermath of lockdowns.
“The gods of fashion have smiled upon Guinness,” he said, after-sales picked up among younger generations, while vodka and wine demand also improved, alongside coffee.
“The company expects profits in the current financial year to be towards the top of market expectations,” he added.
Analysts expect the company to report a profit of £50.62 million for the year, which would mark an increase on last year’s £42.6 million.
Wetherspoon added that 18 pubs had been sold or surrendered to landlords over the year so far, generating a net cash inflow of £6.8 million, while 17 others remain on the market.
Two have been opened in the meantime, leaving the chain operating 809 sites.
Net debt sat at £685 million as of late April, the company added.