JD Wetherspoon share price: what to expect from its full-year results
The FTSE 250 pub chain continues to see its share price climb higher, with investors expecting the company to end the year on a high despite slowing sales growth.
When is JD Wetherspoon’s results date?
JD Wetherspoon (JDW) will unveil its full-year results on Friday September 13.
JD Wetherspoon’s results preview: what does the City expect?
JDW saw its sales increase once again in its half-year results, with like-for-like sales up 6.4%, helping to drive revenue up 7.1% to £889.6 million compared with the same period last year.
When the pub chain publishes its full-year results next week, the company is likely to similar sales growth, but with costs going up, its annual profits will likely come in below the bar set last year.
JDW saw its pre-tax profit (before exceptional items) fall by 18.9% to £50.3 million, down from £62 million in its first six months of trading, with earnings per share of 37.4p, down 18.2%.
Overall though, investors can expect a solid set of results next week, with the pub chain upgrading its full-year guidance twice over the summer period, despite fears among other members of the hospitality industry that Brexit could lead to a hike in food and drink prices.
In response, JDW boss Tim Martin pledged to slash beer prices to ‘unbelievable low’ if Britain does leave on October 31, though that looks increasingly unlikely given that MPs have backed a bill to force the Boris Johnson to ask Brussels for another extension.
But despite ongoing Brexit uncertainty, the company’s share price certainly isn’t waning, with it up more than 45% since January, sitting at £16.30 a share as 10:45 GMT on Thursday.
‘With a company that is growing so impressively on the top line ... it is unusual to not have a profit upgrade ... there isn’t an upgrade because of margin pressure which is largely from labour cost but also from repair and maintenance cost,’ Liberum analyst Anna Barnfather told Reuters earlier this year.
‘I think the disappointment is that this strong sales growth isn’t translating into profit growth,’ she added.
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