3rd Oct 2025 07:46
(Alliance News) - JD Wetherspoon PLC on Friday reported a rise in annual earnings, but noted that sales growth has eased in recent weeks and cost hikes "may have a bearing" on its new financial year.
The pub firm currently expects a "reasonable outcome" for the new year, however.
Wetherspoon achieved a 10% pretax profit hike to GBP81.4 million in the year ended July 27, up from GBP73.9 million. Revenue improved 4.5% to GBP2.13 billion from GBP2.04 billion.
It represents the firm's best pretax profit outcome since financial 2019, before the onset of Covid-19. Total sales, meanwhile, are up 17% compared to that pre-pandemic year.
"However, costs of energy and wages, which have a heavy influence on all other input prices, rose more than sales, so that profits and earnings, while having made a strong recovery, are still below pre-pandemic levels," the firm explained.
Like-for-like sales during the financial year rose 5.1%, but growth has eased to 3.2% in the nine weeks to September 28.
"The latest 'CGA RSM Hospitality Business Tracker', for August 2025, said industry like-for-like sales were 0.5%. During this period, Wetherspoon like-for-like sales were 3.7%. This was the 36th month in a row that Wetherspoon has outperformed the tracker," the company added.
"As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately GBP60 million per annum, and non-commodity energy costs will add GBP7 million. The recently introduced 'extended producer responsibility' tax, a levy on packaging, referred to in the table on page 9, will cost GBP2.4 million in the current year, an increase of GBP1.6 million."
ERP rules mean firms must pay fees for packaging they supply to or import into the UK.
Wetherspoon said: "The company currently anticipates a reasonable outcome for the financial year, although government-led cost increases in areas such as energy may have a bearing on the outcome."
Wetherspoon maintained its annual dividend at 12.0 pence per share. In the prior year, it only paid a final dividend. For the year just ended, it paid a 4p interim dividend and has proposed an 8p final payout.
By Eric Cunha, Alliance News news editor
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