JD Wetherspoons’ Share Price Crashed 9.54% on H1 FY ’24 Results

The JD Wetherspoon plc (LON: JDW) share price crashed 9.54% after the pub company released its preliminary half-year results for the six months ended 28 January 2024. The pub company revealed that its like-for-like sales surged 9.9% compared to the previous fiscal year (FY23), signalling a robust recovery and a positive response to strategic initiatives to boost sales.

The uptick in sales contributed significantly to the overall revenue, which climbed to £991.0 million, marking an 8.2% increase from £916.0 million in FY23. This growth underscores the company's ability to capture market share and enhance its revenue streams amidst competitive pressures.

One of the most striking highlights of this fiscal period is the exponential growth in profitability. Before-tax, profit skyrocketed by 682.6%, from £4.6 million in FY23 to £36.0 million. Similarly, operating profit witnessed an 81.0% increase, reaching £67.7 million, up from £37.4 million in the previous year.

These figures reflect the company's successful cost management strategies and operational efficiencies, significantly enhancing profit margins.

Basic earnings per share (EPS) experienced a meteoric rise of 1930%, jumping from 1.0p in FY23 to 20.3p. This EPS surge indicates the company's robust profitability and positive impact on shareholder value.

However, the financial landscape was challenging, as evidenced by the shift in free cash flow. The company reported a free cash outflow per share of (4.8)p, a stark contrast to the previous year's cash inflow of 132.4p, reflecting a -103.6% variance.

The half-year dividend remained unchanged at 0.0p, indicating a cautious approach to capital distribution in light of the broader financial strategies and cash flow considerations.

When considering separately disclosed items, the financial landscape shifts slightly. Profit before tax after these adjustments stood at £26.1 million, down 54.2% from £57.0 million in FY23, while operating profit after adjustments rose by 92.5% to £72.0 million.

After adjustments, the basic earnings per share were recorded at 15.2p, reflecting a 48.3% decrease from 29.4p in FY23. These adjustments provide a nuanced view of the company's financial health, factoring in specific items that impact the overall profitability and earnings metrics.

JD Wetherspoon share price. 

The JD Wetherspoon share price crashed 9.54% to trade at 718.5p from Thursday’s closing price of 794.3p.