JD Wetherspoon’s (LON:JDW) reported its interim results for the 26 weeks to 27 January 2019, with profits falling over the period.
JD Wetherspoon said that revenue totalled £889.6 million, up 7.1% from £830.4 million in 2018. Like-for-like sales rose 6.3%.
However, the pub group said that profit before tax fell by 18.9% to £50.3 million, compared to £62 million a year ago.
This was attributed to higher labour costs, which rose by £33 million compared to the year before.
In addition to wage pressures, interest payments, utility bills and repairs were also blamed for the fall.
JD Wetherspoon’s chairman Tim Martin, a vocal Brexit supporter, also addressed Brexit in his future outlook, noting that the “establishment” and “doomsters” ignore the “most powerful nexus in economics, between democracy and prosperity”.
Thus far, the firm has opted to stop selling Italian Prosecco and French Champagne and replace them with British or Australian sparkling wines.
Martin also added that sales in the six weeks to March 10 had proved strong up 9.6%, bolstered by the weather.
As a result, the company said that despite higher costs, its trading forecast remains unchanged.
JD Wetherspoon’s is a pub company that operates in the United Kingdom.
It owns around 900 locations, with its first having opened in Muswell Hill in North London.
It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Shares in the London-listed firm are currently +0.92% on the back of the results.