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 £81.4 million in the year ended July 27, up from £73.9 million. Revenue improved 4.5% to £2.13 billion from £2.04 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 £60 million per annum, and non-commodity energy costs will add £7 million. The recently introduced ’extended producer responsibility’ tax, a levy on packaging, referred to in the table on page 9, will cost £2.4 million in the current year, an increase of £1.6 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.
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