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UK’s J D Wetherspoon returns to profit as supply issues ease
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(Reuters) -British pub group J D Wetherspoon Plc on Friday posted a return to half-year profit and said sales in recent weeks have topped pre-pandemic levels.
(Reuters) -British pub group J D Wetherspoon Plc on Friday posted a return to half-year profit and said sales in recent weeks have topped pre-pandemic levels.
“Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic,” Chairman Tim Martin said in a statement.
Martin said he was “cautiously optimistic” on the company’s outlook for the year and the years ahead.
British inflation unexpectedly rose to 10.4% in February, pushed up by higher food and drink prices in pubs and restaurants.
“We expect 2023 to be a grind for pubs, with companies and consumers facing cost headwinds and a sluggish economy,” analysts at Stifel said in a note.
The pub chain, sometimes referred to “‘Spoons”, is priced lower than others in Britain. Its shares were up 4% in early trade.
It reported a half-year profit of 4.6 million pounds ($5.7 million) versus a loss of 21.3 million in a year earlier.
It said sales in the seven weeks to March 19 were 9.1% above 2019 levels and 14.9% above a year earlier.
($1 = 0.8149 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; editing by Rashmi Aich and Jason Neely)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.
Profit is the financial gain obtained when the revenue generated from business activities exceeds the costs and expenses incurred in producing those goods or services.
Supply issues refer to disruptions in the availability of goods or services, often caused by factors like production delays, transportation problems, or increased demand.
A half-year profit is the net income a company earns over a six-month period, reflecting its financial performance during that timeframe.
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