J D Wetherspoon (JDW) Q2 2025 TU earnings summary

Executive summary

• Like-for-like sales rose 5.1% year-over-year in the 25 weeks to 19 January 2025, with bar, food, and slot/fruit machine sales all increasing, but hotel room sales declining by 6.5%.

• Total sales grew 4.0% year-to-date, slightly lagging LFL sales due to pub disposals.

• LFL sales during the main Christmas period were up 6.1% year-over-year.

Financial highlights

• Interest costs for FY25, excluding IFRS 16 notional interest, are expected to be £47 million, down from £53 million in FY24.

• Year-end debt is projected between £680 million and £700 million, up from £660 million in FY24.

• Six pubs sold year-to-date generated £4.1 million in cash inflow.

Outlook and guidance

• Labour-related costs will increase by approximately £60 million per annum from 1 April 2025 due to government-mandated wage hikes.

• The company expresses confidence in a reasonable outcome for the year but notes increased forecasting difficulty due to rising costs.