JD Wetherspoon has reported a surge in sales over the Christmas period, with like-for-like sales jumping nearly 18% in the final quarter of 2022 compared to the same period in 2021. However, the pub chain's sales still lag 2% behind pre-pandemic levels from 2019.
The company, which operates 844 pubs across the UK and Ireland, outperformed the wider sector in December, with sales rising by a fifth against the national average increase of 15%, according to the Coffer CGA Business Tracker.
Chairman Tim Martin highlighted ongoing cost pressures in the hospitality industry, including higher expenses for labour, food, energy and maintenance. He also criticised the tax disparity between pubs and supermarkets, noting that supermarkets pay zero VAT on food sales while pubs and restaurants pay 20%. Martin warned that the pub industry will 'inevitably shrink' relative to supermarkets without tax equality.
Wetherspoon reduced its net debt to £745 million in late January, down approximately £60 million from early 2020. The company also repaid £100 million in government business interruption loans, which were due to mature in August.
During the second half of 2022, Wetherspoon opened two new pubs and sold 10, generating around £2.9 million. Martin expressed cautious optimism about the company's prospects for the current financial year.
