J D Wetherspoon (LSE:JDW), the pub and hotel operator, which runs around 800 sites across the UK and Ireland, said like-for-like sales grew 4.2% over the year, with bar sales up 6.1%, fruit machines up 7.4%, food up 1.2% and hotel rooms up 1.3%.
The company kept its full-year dividend unchanged at 12p per share.
Operating profit before separately disclosed items fell 17.9% to £120.2m, which the company attributed mainly to a 5.3% rise in costs, including £46m in higher wages, £31m in repairs and £9m in business rates. Pre-tax profit before adjustments amounted to £58.6m for the 52 weeks to 26 July, down 28% from £81.4m a year earlier, even as revenue rose 5.2% to £2.24bn.
The operating margin before separately disclosed items narrowed to 5.37% from 6.88% a year earlier.
Basic earnings per share before separately disclosed items fell 16.6% to 42.4p, from 50.8p.
Free cash inflow per share nearly doubled to 92.4p from 47.3p, with total free cash inflow of £100.1m against £56.6m last year, partly aided by a £33.5m increase in working capital.
Eight managed pubs opened during the year against 15 disposals, taking the managed estate to 792 pubs, while 15 new franchised openings lifted the franchise total to 23.
Net debt, excluding lease liabilities, stood at £715.8m at the period end, down slightly from £724.3m a year earlier.
The company repurchased 6.96m shares for cancellation during the year, 6.2% of its start-of-year share capital, at a cost of £46m and an average price of £6.56.
Total capital investment fell to £74.2m from £117m, with spending on new pubs and extensions rising to £28.7m while outlay on existing pubs dropped sharply to £26.3m from £62.5m.
This result follows the company's July warning that full-year profit was likely to come in below market expectations, after flagging marginally softer sales in the final quarter alongside rising costs in food, labour, repairs, energy and business rates.
Chairman Tim Martin said like-for-like sales rose 8.6% in the nine weeks to 27 September, helped by favourable weather and an expanded estate of beer gardens and outside seating.
He noted Wetherspoon outperformed the industry benchmark for the 48th consecutive month, citing the NIQ RSM Hospitality Business Tracker, which showed industry like-for-like sales up 0.8% in August against Wetherspoon's 7.7%.
"Wetherspoon has made a good start to the financial year, although it is at least partially due to weather, which will inevitably revert to the norm," Martin said, adding the company continues to anticipate profit before tax and separately disclosed items in line with current market expectations, with the company-compiled consensus for the 2027 financial year standing at £74m.
The current financial year comprises 53 trading weeks to 1 August 2027, with the next trading update due on 4 November.