Pub chain Wetherspoons posted a dip in third-quarter sales on Wednesday as it warned over rising costs but said it expects to break even this year as sales improve slowly.
In the 13 weeks to 24 April, like-for-like sales fell 4% versus the same period in 2019, while year-to-date LFL sales were down 6.2%.
The company said that since 13 March, it has returned to profitability and to a positive cash flow, and is “cautiously optimistic about the prospect of a return to relative normality in FY23”.
Chairman Tim Martin said: “Since Covid restrictions ended, sales have improved, as previously reported. As many hospitality companies have indicated, there is considerable pressure on costs, especially in respect of labour, food and energy. Repairs are also running at a higher rate than before the pandemic.
“The company anticipates a continuing slow improvement in sales, in the absence of further restrictions, and anticipates a ‘break-even’ outcome for profits in the current financial year.”
The pub group said net debt at the end of the third quarter was £906m and liquidity £173m. Debt is expected to be around £870m at the end of the financial year.
