Pub group JD Wetherspoon has said soaring demand for Guinness from younger punters and recovering demand for ale helped the UK pub chain to higher sales over past three months.
As a result, the company’s founder and chairman Tim Martin said the firm expects annual profits to be “towards the top of market expectations”.
Wetherspoons, which owns and operates more than 800 pubs across Britain and Ireland, said like-for-like sales increased by 5.2 per cent over the 13 weeks to April 28th compared with a year earlier, with total sales up 3.3 per cent.
It represented a slight slowdown in growth and means the company has seen a 6.5 per cent sales increase over the financial year-to-date.
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However, Wetherspoons stressed it was also impacted by the timing of the bank holiday weekend, which fell outside of the latest quarter this year.
Mr Martin said the group has benefited from the rocketing popularity of Guinness and a revival for some traditional ale.
“Sales in the period continued the steady recovery from the pandemic,” he said.
“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.
“The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.”
The group also saw strong sales of Au Vodka and XIX vodka among its younger customers.
Mr Martin added that wine is “on the comeback trail” and highlighted “increasing” sales of its Lavazza coffee refills.
The pub group told investors on Wednesday that it has opened two pubs and sold or surrendered to the landlord 18 pubs in the year to date.
It received a net cash flow of £6.8 million (€7.9 million) from the pubs and said a further 17 are on the market or currently under offer.
Charlie Huggins, manager of the quality shares portfolio at Wealth Club said the company appeared to be moving in the right direction.
“Wetherspoons is being helped by moderating inflation combined with a proposition that is clearly resonating with the consumer,” Mr Huggins said.
“Despite higher interest rates, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon’s commitment to low prices and doing the basics well are helping to keep punters loyal. With many pub and restaurant companies struggling there is an opportunity for Wetherspoons to gain share in the current environment. With costs also coming down, it looks well set to continue its profit recovery.” – PA
