Sip, sip, hooray! UK sees increase in demand for wine
16th May 2024
Pub chain J D Wetherspoon has announced strong growth in sales with year-to-date like-for-like sales up 8.3% so far.
Announcing the figures in a trading update, JDW also said that sales were up 5.2% in the 13 weeks to 28th April 2024, with total sales up 3.3% in the quarter and 6.5% on the year.
The last week of the period last year included a bank holiday weekend, whereas this year the bank holiday was a week later. Excluding that week, like-for-like sales for the first 12 weeks of the period increased by 6.0%.
It comes as the firm announced a slashing of its drinks range, dropping 18 products, including Buffalo Trace and Lambs Navy Rum, and upping its proportion of no- and low-alcohol options.
Steady recovery
In the year-to-date, the company has opened two pubs and sold or surrendered to the landlord 18 pubs. Most of the pubs were smaller and older, or where the company has a second pub in reasonably close proximity. There was a net cash inflow of £6.8 million from the 18 disposals.
17 trading pubs remain on the market, or are under offer, and the company currently has a trading estate of 809 pubs. Net debt is currently £685m at the end of April 2024.
Speaking about the future outlook, chairman Tim Martin said that sales in the period continued the steady recovery from the pandemic.
He added: “Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade.”
Looking ahead, JD Wetherspoon spokesperson said they expect profits in the current financial year to be “towards the top of market expectations”.
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