JD Wetherspoon PLC (LSE:JDW) said it anticipates "break-even" profits for the current financial year though costs related to labour, inflation and energy continue to exert pressure.
The pub group, which slipped into the red during its first half, said it returned to profitability and a positive cash flow since March 13, with like-for-like sales for the 13 weeks to April 24 down by 4.0% below pre-pandemic levels.
Year-to-date like-for-like sales slipped 6.2% at the company which runs more than 800 pubs in the United Kingdom and Ireland, but in the six weeks to the end of the quarter sales were down 1.6%, with LFL sales "slightly positive" in the last two weeks of the period.
The company is optimistic about a return to more normal times in 2023.
"As many hospitality companies have indicated, there is considerable pressure on costs, especially in respect of labour, food and energy. Repairs are also running at a higher rate than before the pandemic," said chairman Tim Martin.
"The company anticipates a continuing slow improvement in sales, in the absence of further restrictions, and anticipates a 'break-even' outcome for profits in the current financial year."
Net debt was £906mln at quarter end, with debt expected to fall by year-end.
More Martin?
As usual, Martin gave his thoughts on the wider sector, saying future lockdowns and restrictions are the most significant threat to hospitality, tourism, and related sectors, adding neither the nation's history nor its own pre-pandemic plans ever contemplated such actions.
He questioned the prolonged national lockdown in the UK calling into question the outcome in Sweden, "a more urbanised country than the UK, which did not lock down - and which appears to have had better health results."
"The collateral damage from lockdowns has yet to be quantified, but the economic cost, approximately half a trillion pounds, financed largely by 'money printing' by the Bank of England, is a direct cause of the current inflationary crisis."