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Investing.com — J D Wetherspoon PLC (LON:JDW) swung to a profit and posted higher-than-anticipated sales in its first half, but the pub group flagged that it is still facing elevated input costs.
Adjusted pre-tax income for the six months ended on January 29 came in at £4.6 million (£1=$1.225), rebounding from a loss of £26.1 million in the corresponding period last year.
Like-for-like sales at the Watford-based chain grew by 13.0% year-on-year to £916M, above Bloomberg consensus estimates of £865M. However, the figure slipped by 0.6% versus the first half of its 2020 financial year, which included the months just before the outbreak of the COVID-19 pandemic.
In a statement, chairman Tim Martin said the firm has seen “substantial improvement” in sales and profits when viewed against the prior fiscal year, adding that it is now “cautiously optimistic” about returns in the current period.
However, Martin noted: “Inflationary pressures in the pub industry, as many companies have said, have been ferocious, particularly in respect of energy, food and labor.”
Shares in J D Wetherspoon climbed by more than 7% on Friday.
