JD Wetherspoon Reports 10% Profit Rise Despite Rising Taxes and Costs

JD Wetherspoon reported a 10% rise in pre-tax profits to £81.4 million and a 5.1% increase in like-for-like sales, outperforming rivals for the third consecutive year despite running 85 fewer pubs than before the pandemic. However, shares fell around 4% due to concerns over rising costs from taxes, energy levies, and wages, which Chairman Tim Martin estimates will add about £67 million annually to expenses. Martin criticized government policies including increases in national insurance, minimum wage, and a new packaging levy, arguing that pubs face unfair tax treatment compared to supermarkets, which do not charge VAT on food. The company maintained its 12p dividend and continued capital investment while repurchasing shares, but rising debt and operating costs, particularly a 57.8% increase in energy costs and 34.5% in wages since 2019, weighed on investor sentiment. Despite these pressures, Wetherspoon's sales per pub are 29% higher than in 2019, indicating strong consumer demand, especially from cost-conscious customers attracted by the chain's competitive pricing. The outlook remains cautious as the company balances steady sales growth against a challenging cost environment and inflationary pressures.