JD Wetherspoon reveals profits rebounded further over past year

Pub group JD Wetherspoon has revealed its profits rebounded further over the past year, as strong customer demand helped boost revenues.

The company revealed that pre-tax profits jumped by 73.5 per cent to £73.9m for the year to July 28, compared with the previous year.

It came as revenues grew by 5.7 per cent to £2.04bn, driven by a 7.6 per cent rise in like-for-like sales.

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The improved rate of sales at its pubs was slightly offset by a decrease in its number of pub sites, after the group sold 18 pubs and terminated the lease on a further nine. It also opened two sites.

Pub group JD Wetherspoon has revealed its profits rebounded further over the past year, as strong customer demand helped boost revenues. (Photo by Victoria Jones/PA Wire)Pub group JD Wetherspoon has revealed its profits rebounded further over the past year, as strong customer demand helped boost revenues. (Photo by Victoria Jones/PA Wire)
Pub group JD Wetherspoon has revealed its profits rebounded further over the past year, as strong customer demand helped boost revenues. (Photo by Victoria Jones/PA Wire)

Tim Martin, the chairman of JD Wetherspoon, said: “Sales continue to improve. In the last nine weeks, to September 29 2024, like-for-like sales increased by 4.9 per cent.

“The company currently anticipates a reasonable outcome for the current financial year, subject to our future sales performance.”

Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, commented: “Wetherspoons has enjoyed a good year, reporting a significant recovery in sales and profits and a return to the dividend register. With many pub and restaurant companies struggling in the current environment, this is an impressive performance.

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"Despite the challenging economy, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon's commitment to low prices and doing the basics well are helping to keep punters loyal.

"The backdrop still remains very difficult, with the rise in wages posing a considerable cost headwind for the sector.

"But Wetherspoons looks better placed than its rivals to shoulder this. With interest rates now starting to come down and inflation moderating, the outlook for the consumer also looks better than it has for some time.”

"In an environment where the strong seem likely to get stronger, Wetherspoons looks well placed to grow market share and sustain its recent sales momentum."

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Richard Hunter, Head of Markets at interactive investor, commented: “The pandemic hangover is something from which Wetherspoons has not fully recovered, but there are nonetheless increasing signs of progress.”

He added: "Wetherspoons will continue to rail against the authorities on a number of issues which it feels are detrimental to its business, such as tax inequality with regard to VAT and business rates compared to the supermarkets, as well as some of the current proposals being considered which could further hinder progress.

"For example, a reduction in opening hours is reportedly under discussion, with Wetherspoons pointing out that despite the obvious conclusion, the most popular drinks in its pubs – by far – are Pepsi, coffee and tea as habits continue to change."

Mr Hunter continued: “For the moment, current trading remains sprightly, with like for like sales in the nine weeks since the end of this financial year ahead by 4.9 per cent. From a broader perspective, the economic outlook for the UK is another potential headwind. Wetherspoons has been able to pass on some of the inflationary costs without diminishing its appeal, but equally it will be mindful that this particular strategy needs to be reined in where possible in order to maintain its no-nonsense and no-frills value offering.”

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