In the firm’s interim results for the 26 weeks ended 25 January 2026, JDW also outlined six managed pubs opened in the year and six were sold or closed with disposals giving rise to a cash inflow of £3.3m.
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The business reported like-for-like sales were up 4.8% from the first half (H1) of the company’s 2025 financial year (FY25) while revenue saw a 5.7% uplift to £1.09bn.
However, profit before tax fell by almost a third (31.9%) to £22.4m and operating profit also dropped by nearly a fifth (18.4%) to £52.9m.
Furthermore, the update revealed six JDW managed pubs opened in the year and six were sold or closed with disposals giving rise to a cash inflow of £3.3m.
Total capital investment was £45.3m in the period (against £64.6m in H1 FY25) while £12.3m was invested in new pubs and pub extensions (compared to £10.4m in H1 FY25).
Outperforming tracker
Some £18.3m was invested in existing pubs (£34.7m in H1 FY25), £2.7m in business and IT projects (£6m in H1 FY25) and £12m in freehold reversions of properties where JDW was the tenant (against £13.6m in H1 FY25).
Chairman Tim Martin said: “In the past seven weeks to 15 March 2026, like-for-like sales increased by 2.6%.
“The latest CGA RSM Hospitality Business Tracker for February 2026 said industry like-for-like sales were down by 0.2%.
“During this period, JDW like-for-like sales were up 3.2%. This was the 42nd month in a row that JDW has outperformed the tracker.
“As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60m per annum and non-commodity energy costs will add £7m.
“The Extended Producer Responsibility tax – a levy on packaging – will cost £2.4m in the current year; an increase of £1.6m."
Profit warning
He added: “These cost increases will undoubtedly add to underlying inflation in the UK economy, although JDW as always, will endeavour to keep price rises to a minimum.
“There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry.
“This may result in profits that are slightly below current market expectations.
“The forecast for year-end net debt remains unchanged.”
In a separate statement, Martin repeated his calls for VAT equality between pubs and supermarkets, mentioning the VAT Club, which aimed to cut VAT on hospitality food and drink from 20% to 5% when French VAT expert Jacques Borel launched it in 2010.
Last month (February), the pub group announced it was set to open a new site at The University of Guildford.
This came after it submitted plans to open a new pub on Shaftesbury Avenue, at a former Coyote Ugly site.
