J D Wetherspoon Profit and Revenue Rise, Shares Fall

J D Wetherspoon PLC (LON: JDW) announced its preliminary results for the 52 weeks ended July 27, 2025, showcasing a robust performance with increases across key financial metrics.

However, shares declined in early Friday trading as the company warned that it would incur higher costs due to government policies.

The pub chain's like-for-like sales increased by 5.1% compared to the previous fiscal year, contributing to an overall positive outlook.

Revenue climbed to £2.13 billion, a 4.5% increase from £2.04 billion in 2024. Profit before tax, before separately disclosed items, rose by 10.1% to £81.4 million, up from £73.9 million.

Operating profit also saw a gain, reaching £146.4 million compared to £139.5 million, marking a 4.9% increase.

Basic earnings per share (EPS) before separately disclosed items increased by 4.5% to 50.8p, from 48.6p. Free cash inflow per share showed substantial growth, surging 79.2% to 47.3p from 26.4p. The full-year dividend remained steady at 12.0p per share.

After accounting for separately disclosed items, profit before tax jumped significantly by 47.4% to £89.3 million (2024: £60.6 million), while basic earnings per share increased by 48.1% to 60.0p (2024: 40.5p). However, operating profit after separately disclosed items saw a slight decrease of 0.3%, landing at £142.2 million (2024: £142.6 million).

The company's strong cash flow generation is a notable highlight, providing flexibility for future investments and potential shareholder returns. The steady dividend payout underscores Wetherspoon's commitment to rewarding its investors, even amidst inflationary pressures and increased operating costs.

Chairman Tim Martin commented on the results, stating that like-for-like sales increased by 3.2% in the first nine weeks up to September 28, 2025. Wetherspoon outperformed the ‘CGA RSM Hospitality Business Tracker' for the 36th consecutive month, with like-for-like sales up 3.7% compared to the industry's 0.5% increase.

However, Martin cautioned about rising costs, including increases in national insurance, labor rates (approximately £60 million per annum), non-commodity energy costs (£7 million), and the new ‘Extended Producer Responsibility' tax (£2.4 million). These costs are expected to add to underlying inflation, but Wetherspoon aims to minimize price increases.

Martin also highlighted the substantial tax contribution made by Wetherspoon, its customers, and employees, totaling £838 million for the UK government. This amounts to approximately £1 in every £1,000 of all UK tax revenue.

Wetherspoon anticipates a reasonable outcome for the current financial year, but government-led cost increases, particularly in energy, could influence the final results.