JDW Q3, PIER full year, XPF update, AB InBev (Q1), site closures & other:

A DAY IN THE LIFE:

I’ve been trying to tidy up my LinkedIn account recently because, to be honest, I can’t see the good stuff – and there really is some of it – for the blizzard of nonsense that gets stuck on my feed.

It’s a mixture of irrelevant fluff, car ads, job celebrations or anniversaries and truly cringeworthy comments such as ‘there’s no adventure more terrifying than following your dream’ put up there by life-coaches, wellness advisors and mental mentors, whatever they are and, tidying it up is more easily said than done.

Anyway, tight for time just now so let’s move on to the news:

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JD WETHERSPOON – Q3 TRADING UPDATE:

JD Wetherspoon has today updated on Q3 trading and our comments thereon are set out below:

Headline numbers: JDW has reported that Like-for-like sales increased by 5.2% in the 13 weeks to 28 April 2024, compared to the same period last year. The company reports that year-to-date (YTD) like-for-like sales increased by 8.3%. JDW adds that, due to a reduced number of units, total sales increased by 3.3% in the quarter and by 6.5% YTD. The company clarifies that ‘the last week of the period last year included a bank holiday weekend, whereas this year the bank holiday was a week later. Excluding that week, like-for-like sales for the first 12 weeks of the period increased by 6.0%.’ This being a quarterly update, there is no mention of margins.

Property, cash & debt: JDW updates that ‘in the year-to-date, the company has opened two pubs and sold or surrendered to the landlord 18 pubs.’ It says that most of the sold or surrendered…

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PUBS & RESTAURANTS:

Closures:

The latest Hospitality Market Monitor from CGA by NIQ and AlixPartners has revealed that the rate of hospitality closures has slowed in Q1 this year versus last. Weaker players may have gone under already but, nonetheless, the Monitor reports that ‘closures in Britain’s hospitality sector slowed from eight sites a day in 2023 to four a day in the first quarter of 2024.’ There was a ‘0.4% decline in total numbers between the start of January and the end of March—the third smallest quarter-on-quarter drop since the start of the COVID-19 pandemic….’

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Transport problems:

Train strikes this week on the back of ASLEF walkouts will cause further problems for venues relying on after-work drinkers or on those planning to come back into town after work.

Breweries:

SIBA reports that ‘beer from independent breweries returns to pre-pandemic levels after 4 tough years of recovery for the sector.’ It reports that ‘average beer production volumes amongst independent breweries have risen by 14% compared to 2023, returning to pre-pandemic levels for the first time in 4 years.’ It adds that ‘cask beer has also seen a big increase, with volumes up 10% year-on-year…’

WFH abates

Rightmove has suggested that fewer Londoners are searching for homes in the countryside as numbers have returned to pre-Covid levels. Rightmove reports ‘we can see a resurgence in London back to pre-pandemic levels, and a general increase in the popularity of cities among buyers.’

Other news:

Lumina Intelligence’s Menu Tracker report for Q1 has suggested that food menu price inflation registered 8.3% in the year to that quarter, driven by price increases in chain restaurants. Lumina reports that price inflation for pubs, bars, QSR and coffee and sandwich shops has fallen to below 5%.

Scotland: Leon Thompson, Executive Director of UKHospitality Scotland, has said re the appointment of John Swinney as first minister, that this is a ‘moment to start afresh with businesses, who feel they have not been listened to or properly valued in recent years.’ He says ‘the Scottish Government has at its disposal a hospitality and tourism sector that is an economic giant and a valuable partner in showcasing Scotland around the world….’

Data from the ONS suggests that draught lager prices rose by 0.5% in Q1 this year. Year on year, prices are up by around 4.6%.

The National Alcohol Beverage Control Association in the US has reported that US spirits sales continued to slip in March with volumes down by 4.3% on the same month a year earlier. Most categories fell with rum down 11.5% in volume terms and vodka down 9.2%.

COMPANY NEWS:

Brighton Pier Group has reported full year results to 24 Dec 2023 saying that revenues came in at £34.8m with a loss before tax reported of £8.8m (after non-cash items of £8.2m). The comparable period to Dec 2022 was an 18 month period. The company reports that ‘overall, trading conditions were challenging for the business, with cost of living pressures softening consumer demand, most notably in the Bars division, as well as poor weather, train strikes and a fire at the Royal Albion Hotel impacting footfall to the Pier during key trading periods….’

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AB InBev has reported Q1 numbers saying that the group has increased its EBITDA by 5.4% and its underlying EPS by 16%. The company says that revenues rose by 2.6% with total volumes down 0.6%. AB InBev CEO Michel Doukens says ‘the strength of the beer category, our diversified global footprint and the continued momentum of our megabrands delivered another quarter of broad-based top- and bottom-line growth. We are encouraged by our results to start the year, and the consistent execution by our teams and partners reinforces our confidence in delivering on our 2024 growth ambitions….’

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XP Factory, which runs the Escape Hunt and Boom Battle Bar outlets, has updated on trading in Q1 saying that ‘continued growth in Q1 sees performance in line for the financial year to 31 March 2024.’ The group has changed its year-end and numbers this year will be for a 15-month period. XPF says that ‘group turnover in the 15 months of £57.8m (12 months to Dec 2022: £22.8m)’ and adds that it has seen ‘strong like for like sales growth delivered across both brands in the 13 weeks to 31 March 2024…’

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Bacardí is reported to be reducing its presence in Russia.

Monster Beverage has reported Q1 revenues up by 12% to $1.90 billion, in line with market expectations. The company says ‘we continue to see growth in the energy drink market globally. In the United States, energy is the only segment of the beverage category currently showing unit growth…’

J D Wetherspoon reported yesterday that it is to invest more than £5 million developing a new 26 bedroom hotel and refurbishing The Mile Castle pub in Newcastle. It will create a new beer garden and construct the hotel in an adjoining building.

Thornbridge Brewery reports that it has worked with Carlsberg Marston’s Brewing Company (CMBC) to ‘save a Burton Union set and in doing so ensure that a vital part of British Brewing history remains operational.’ The company says ‘the Union System dates back to the 1800s and is a beautiful wood-barrel fermentation system that has been used continuously in the production of different beers over the decades.’

Hostmore has confirmed that its shares have been readmitted to trading.

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Union Unite has postponed stoppages at Heathrow “to allow meaningful, last-minute talks”. The union had been concerned about out-sourcing plans.

OTHER LEISURE:

Disney has reported its financial Q2 (to end-March) saying that, in the quarter, Disney’s traditional TV revenue fell by 8% but Disney+ reported an operating profit of $47m compared with a loss of $587m in the same period a year ago. Adding in ESPN+ and Hulu means that operating losses in the division fell to $18m in Q2 from $659m a year ago….

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Nintendo is reported to have updated on plans for a successor to its Switch platform. No detail has been revealed but Nintendo president Shuntaro Furukawa has now promised an announcement before March next year.

The Guardian reports ‘there are fresh questions about the financial health of the American private investment firm hoping to take over Everton after passenger planes belonging to an Australian airline it owns were repossessed and its carrier left on the brink of collapse….’

• The paper reports that ‘777 Partners – which has loaned Everton more than £200m in the seven months it has been unsuccessfully attempting to convince the Premier League it has the funds to complete a proposed takeover of the Toffees – is in the grips of a new crisis in Australia, where an airline it wholly owns, Bonza, entered administration on Tuesday.’

FINANCE & MARKETS:

Shadow chancellor Rachel Reeves has accused the government of “gaslighting” the public about the state of the economy. Ms Reeves says that Chancellor Jeremy Hunt and Prime Minister Rishi Sunak are making “deluded” statements.

The Construction PMI for the UK in April rose from 50.2 to 53.0 reports S&P…

The Halifax has reported that UK house prices held steady in April with minimal growth of 0.1% between March and April after a fall of 0.9% in March. The mortgage lender reports that property prices are up 1.1% annually vs +0.4% last month. The Halifax reports that ‘Northern Ireland remains strongest performing nation or region in the UK…’

Sterling weaker at $1.2485 and €1.1929. Oil lower at $82.67. UK 10 year gilt yield down 12 basis points at 4.13%. world markets broadly better yesterday and London set to open up around 13 points as at 6.30am.

RETAIL WITH NICK BUBB:

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