Wetherspoon Reports Profit Growth but Warn of “Government-Led” Cost Increases

Pub operator JD Wetherspoon has announced improved annual financial results, though the company has flagged a slowdown in recent trading and warned that mounting costs could impact performance in the current financial year.

The nationwide chain recorded pre-tax profits of £81.4 million for the 52 weeks ending 27 July, representing a 10% increase on the previous year’s £73.9 million. Turnover climbed 4.5% to reach £2.13 billion, compared with £2.04 billion in the prior period.

The figures mark the pub group’s strongest profit performance since 2019, prior to the coronavirus pandemic. Total sales have risen 17% when measured against that pre-Covid benchmark year.

Nevertheless, the business acknowledged that energy and labour costs have escalated faster than sales growth, meaning profitability remains below pre-pandemic levels despite the recovery.

These expense categories influence pricing across the broader supply chain, the company noted.

Like-for-like sales increased 5.1% across the full financial year, though this momentum has moderated in recent weeks, with growth of 3.2% recorded during the nine-week period to 28 September.

Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc, said: “In the last nine weeks, to 28 September 2025, like-for-like sales increased by 3.2%. 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.

“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. Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.

“In appendix 2 and the link within the “Health and pubs” section below, I have written articles which expand on the tax advantages of supermarkets compared to pubs and on questionable dietary advice, including advice about alcohol consumption, which has gained increasing support among academic commentators and legislators. Sensible policies in both these areas are essential for the future well-being of the hospitality industry.

“In the last financial year, Wetherspoon, its customers and employees generated a total of £838 million of taxes for the UK government. The total tax raised by the government in the last financial year was £858.9 billion. Therefore, Wetherspoon generated approximately £1 in every £1,000 of all UK tax revenue. In other words, the country only needs about one thousand companies like Wetherspoon and no one else would have to pay any taxes at all. Wetherspoon is confident that it will provide more tax revenue for the government in the current financial year, while aspiring to increase earnings per share at the same time.

“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.”

Julie Palmer, partner at Begbies Traynor, said: “JD Wetherspoon has delivered a refreshing return to form despite the tricky consumer backdrop, serving up record sales and a 10.1% rise in profits. Serving up such a performance while also being hit hard by higher wages and tax costs post-budget is no mean feat. Indeed, while many smaller pub chains are falling by the wayside, Wetherspoon’s scale and loyal fan base are clearly keeping it firmly ahead of the game.

“With profits now closing in on pre-pandemic highs, the pub giant is proving its impressive ability to ride out the current storm. In a sector drowning in closures and cost pressures, Wetherspoon is proving it can adapt and grow, without alienating its price-conscious punters.

“That said, with another budget on the horizon and more tax rises expected, the pressure is far from over. Tim Martin’s outspoken stance on taxes may win headlines, but it’s unlikely to change the political tide. Even so, Wetherspoon’s has shown it has the right formula to roll with the punches and keep moving forward for now.”