Profits at JD Wetherspoons pub chain surge on the back of over €1bn in sales 

The chairman of Wetherspoons said: 'If the improvements continue we'll be back to pre-pandemic levels in the next year or two.'

The group operates seven locations in Ireland, five of which are in Dublin with one in Cork and one in Carlow.

Profits at British pub group JD Wetherspoon have surged during the first half of its financial year as it posts more than €1bn in sales.

According to the company, profits during this period stood at £36m (€41.9m) up from £4.6m (€5.35m) during the same time a year earlier which represents an increase of over 680%.

However, sales growth in the company has slowed in recent weeks with concerns being raised by the chairman.

The group, which owns and operates pubs across Britain and Ireland, reported a 5.8% increase in like-for-like sales for the seven weeks to March 17. That was down from a 9.9% increase in the half-year ended January 28.

Sales growth slowed at the start of its fiscal second half and margins were still below pre-pandemic levels, sending its shares down as much as more than 9% in early trading.

The company said total sales for the first half of this financial year stood at £991m (€1.15bn) — an increase of 8.2% compared to the period during the last financial year. The group operates seven pubs in Ireland, five of which are in Dublin with one in Cork and one in Carlow.

While the high inflation of recent years has moderated, pubs still face pressures from labour costs and the price of some raw materials.

The chairman of Wetherspoons, Timothy Randall Martin, told Reuters that Britain needs to have a tax system that attracts foreign investment and also needs more rental accommodation.

Wetherspoon reported an operating profit margin of 6.8% for the first half of the year which is still below the pre-covid level of 7.1%.

"It's been a very slow climb back from the pandemic, with an acceleration (of margins) this financial year — if the improvements continue we'll be back to pre-pandemic levels in the next year or two," Mr Martin said.

During the first half of the year, the company also sold five pubs and terminated the leases of five others and the sublets of three.

Reuters