J D Wetherspoon (JDW) H2 2024 earnings summary

Executive summary

• Revenue increased 5.7% year-over-year to £2,035.5m, with like-for-like sales up 7.6%.

• Profit before tax (pre-exceptionals) rose 73.5% to £73.9m; operating profit reached £139.5m with a 6.9% margin.

• Diluted EPS (pre-exceptionals) grew 77.3% to 46.8p; a final dividend of 12.0p per share is proposed.

• Free cash flow per share fell 87.5% to 26.4p, and net debt increased to £660m.

• Staff retention and food hygiene ratings hit record levels, with 42,300 employees and 24,510 shareholders.

Financial highlights

• Like-for-like bar sales rose 8.9%, food sales 5.6%, slot/fruit machine sales 10.8%, and hotel-room sales 2.7%.

• Adjusted profit before tax (after separately disclosed items) was £60.6m, down 33% from last year.

• Average weekly sales per pub rose to £58,100.

• Net debt/EBITDA improved to 2.58x from 3.78x last year.

• Tax contributions totaled £780.2m, representing 38.3% of net sales.

Outlook and guidance

• Like-for-like sales in the first nine weeks of FY25 are up 4.9% over the prior year.

• Management anticipates a reasonable outcome for the year, citing positive sales momentum and profit growth.

• Underlying free cash flow is growing, and debt has reduced substantially since the pandemic.

• Ongoing concerns include potential future lockdowns and the impact of government pandemic inquiries.