Member Article

Higher costs impact Wetherspoon's margins

Increased costs and marketing spend have impacted JD Wetherspoon’s operating margins, for the first half of the year ending January 27.

The pub chain say like-for-like sales increased 8% and total sales increased by 11.3%, although operating margins were expected to be approximately 1.1% lower than the last financial year.

In a trading update, the company cited higher taxes, utility bills, labour and product supplies costs, as well as increased marketing spend.

Wetherspoons opened five new pubs so far this financial year, and currently have another 12 under development.

The company said: “Our sales, profit and cash flow continue to be resilient, in spite of the continuing taxation and regulation burden on the pub industry and the ongoing pressure on consumer’s disposable incomes. The Board expects a reasonable outcome for the current financial year.”

This was posted in Bdaily's Members' News section by Tom Keighley .