Jan 21 (Reuters) - British pub chain J D Wetherspoon warned on Wednesday that fiscal year 2026 trading outcome could be slightly below the previous fiscal as it grapples with higher costs and slower
Wetherspoon Faces Profit Decline Amid Rising Energy and Tax Costs
Wetherspoon's Financial Challenges
Jan 21 (Reuters) - J D Wetherspoon warned on Wednesday that fiscal 2026 profit could fall as the British pub chain grapples with mounting costs from energy bills, repairs and property taxes, sending shares 8% lower in early trading.
Impact of Rising Costs
Like-for-like sales rose 4.7% in the 25 weeks to January 18, on strong bar sales during the second quarter and the Christmas period, but revenue growth has been offset by rising expenses.
Industry Concerns Over New Taxes
The pub group said profits in the first half ending January 25 are likely to be lower as costs jumped by 45 million pounds in the first 25 weeks.
Government Response and Support Measures
Shares fell more than 8% in early trade, putting the stock on track for its worst day since March last year.
"If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25," Chair Tim Martin said in a statement.
NEW PROPERTY TAXES SPARK INDUSTRY CONCERNS
Changes to business rates introduced in November - a property tax on commercial premises - have raised concerns about possible pub closures and job losses across the pub industry, with the British Beer and Pub Association warning that up to 15,000 jobs could be at risk and about 5,000 smaller pubs facing a business-rates bill for the first time.
Earlier in January, the government said it was considering measures to ease business‑rates pressures on pubs and would explore licensing and deregulation steps to support the hospitality sector.
After a year marked by higher wages and national insurance costs, the latest increases in energy bills and taxes are adding pressure to Wetherspoon's low‑cost model, which analysts say could limit its ability to raise prices.
($1 = 0.7442 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Louise Heavens)
