JD Wetherspoon profit falls 28% as higher costs outweigh sales growth

British pub operator JD Wetherspoon PLC reported a 28% fall in annual pre-tax profit for the 52 weeks ending July 26, 2023, as higher costs outweighed sales growth. Despite a 5.2% increase in revenue to £2.24 billion, profit on that basis fell to £58.6 million, down from £81.4 million the previous year. Operating profit before separately disclosed items declined 17.9% to £120.2 million.

Chairman Tim Martin attributed the decline to increased government-led costs across the hospitality industry. Despite the setback, Wetherspoon expects annual pre-tax profit before separately disclosed items to align with current market expectations and has outperformed the hospitality sector for 48 consecutive months.

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