JD Wetherspoon has posted a rise in profits as like-for-like sales were up 6.9% in the 10 weeks to 7 July, consistent with growth in the year to date of 6.7%.
Total sales for the value pub chain were up by 6.9% over recent weeks and 7.4% so far for 2019.
Although the pub chain saw a sales increase the estate shrank by nine disposals with five new pub openings in the year to date.
Wetherspoon’s expects to book £3m in exceptional losses as some of the disposals came under the balance sheet value.
Alasdair Ronald, of Brewin Dolphin said the sales growth is a result of “stack ’em high, sell ’em cheap” policy.
“One issue of specific concern is the company’s ability and willingness to pass on price increases to offset input cost pressure, which has been weighing on its operating margins in fact, the business has the lowest margins of the large UK pub companies.”
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