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(Alliance News) - Pub chain JD Wetherspoon PLC on Wednesday posted lower sales in the third quarter and also warned of "considerable" cost pressures facing the company.
Like-for-like sales in the 13-week-period ended April 24 fell by 4.0% compared to the same period in the financial year 2019, which was before the Covid pandemic in the UK. In its financial year to date, like-for-like sales were down 6.2%.
The company's shares were down 3.2% to 717.50 pence after the pub chain said virus woes have been replaced by "considerable pressure on costs" as a new source of concern.
In the last two weeks of the period, like-for-like sales were slightly positive, Wetherspoons added.
The company expects to reduce its net debt to GBP870 million at the end of its financial year, from GBP906 million at the end of its third quarter.
The quarter was hurt by Covid restrictions, leading to lower sales, Watford-based Wetherspoons said. The firm sees itself now more affected by inflation, especially labour, food and energy costs.
"Since March 13, the company has returned to profitability and to a positive cash flow, and is cautiously optimistic about the prospect of a return to relative normality in financial year 2023," said Chair Tim Martin.
"The biggest threat to companies in the hospitality, tourism and related sectors is the possibility of future lockdowns and restrictions," he added.
By Tom Budszus; tombudszus@alliancenews.com
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