Pub chain JD Wetherspoon has seen its sales jump ahead of pre-pandemic levels as chairman Tim Martin said he looks forward to “ferocious” inflationary pressures easing up across the pub industry.
The pub chain reported a 5% increase in sales over the six months to January 29, compared to the same period in 2019, and up 13% compared to the previous year.
The business, which has been heavily exposed to rising costs for energy, food and labour, said its pre-tax profit shrank by more than 90% to £4.6 million in the first half, from £50 million in 2019.
Nevertheless, it means it returned to profit after suffering a loss amid the pandemic.
Tim Martin, Wetherspoon’s chairman, said: “Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic, rather than a consequence of Brexit, as many commentators have argued.
“Inflationary pressures in the pub industry, as many companies have said, have been ferocious, particularly in respect of energy, food and labour.
“The Bank of England, and other authorities, believe that inflation is on the wane, which will certainly be of great benefit, if correct.
“Having experienced a substantial improvement in sales and profits, compared to our most recent financial year, and with a strengthened balance sheet, compared both to last year and to the pre-pandemic period, the company is cautiously optimistic about further progress in the current financial year and in the years ahead.”
