British pubs group JD Wetherspoon forecast a slightly improved annual trading outcome compared with previous expectations thanks to a robust sales performance this year.
The owner and operator of over 900 pubs in Britain and Ireland said its third-quarter like-for-like sales for the 13 weeks to April 23 increased by 4%, higher than the 3.8% advance seen last year.
Sales have held up despite signs from other British companies that rising inflation was making consumers cut back on spending.
Wetherspoon, however, reiterated its warning of "significantly higher" costs in the second half of the year and estimated it would need comparable sales growth of about 3-4% in the next year to maintain profit levels, as a result of the higher costs.
It said it expects higher costs in the latter half of the year related to business rates, utility taxes, excise duty and staff. Its financial year runs until the end of July.
Wetherspoon has been battling higher costs related to its purchases made in currencies other than the pound following the decline in the value of sterling since last June's Brexit vote.
Measures in the UK government's March budget would add an increase in taxes and duties of at least £20m next year, Wetherspoon said at the time.
