J D Wetherspoon Plc · LSE:JDW
J D Wetherspoon — H1 2024 Earnings Presentation
30 slides from J D Wetherspoon's earnings presentation, Mar 22, 2024
Slide 1: Interim Results
The Captain Flinders, Euston INTERIM RESULTS 22 March 2024
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Slide 3: Financial Summary
Financial Summary H1 H1 Var% 2023 20222,5 20213 2020 2019 2018 20172 2016 2015 2014 2024 20235 Revenue 991.0 916.0 8.2% 1,925.0 1,740.5 772.6 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 (£ million) Like-for-like sales +9.9% +5.0% +12.7% -4.7% -38.4% -29.5% +6.8% +5.0% +4.0% +3.4% +3.3% +
Slide 4: Average Weekly Sales Per Pub (inc VAT)
Average Weekly Sales Per Pub (inc VAT) £000 56.2 53.0 54 50.1 52 48.0 50 46.5 48 45.3 44.4 46 44 41.7 42 39.0 40 37.4 36.0 38 34.1 36 34 32 30 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 H1 2023 2024 • Financial years 2020, 2021 and 2022 were impacted from a VAT reduction during the COVID-1
Slide 5: Underlying earnings per share (pence)
Underlying earnings per share (pence)1,2 pence 66.6 76.5 70.2 80.0 70.0 48.0 60.0 47.6 43.8 50.0 24.7 40.0 19.5 30.0 20.0 0.7 10.0 0.0 -10.0 -20.0 -21.3 -30.0 -40.0 -35.9 -50.0 -60.0 -70.0 -80.0 -90.0 -100.0 -110.0 -120.0 -119.1 -130.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 H1 2023 202
Slide 6: Like-for-like Performance
Like-for-like Performance % H1 2024 H1 20232 2023 20222 2021 2020 2019 2018 2017 2016 2015 2014 Bar +11.6 -0.8 +9.0 -6.5 -42.2 -29.3 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 Food +7.6 +12.0 +17.7 -3.2 -37.4 -30.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 Fruit/slot machines +10.5 +44.3 +26.4 +12.3 -52.1 -20.9 +10.3 +2.9
Slide 7: 10 Year Operating Profit
10 Year Operating Profit £ million H1 2024 H1 2023 20232 20221,2 20212 2020 2019 2018 20171 2016 2015 2014 Turnover 991.0 916.0 1,925.0 1,740.5 772.6 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 Pub profit (pre repairs) 206.2 164.5 370.2 295.8 131.5 214.2 349.7 338.6 330.6 288.3 285.4 284
Slide 8: Allocation of Resources
Allocation of Resources Dividend Reinvestment in business and IT £13m projects £15m £14m £8m Freehold reversions and £10m £1m £15m investment properties £13m £14m £24m £7m £5m Share buybacks £5m £22m £16m £13m £25m £36m £89m £7m Capex on new and £13m £98m existing pubs £52m £3m £77m £54m £26m £28m £
Slide 9: Cash Capital Expenditure
Cash Capital Expenditure H1 H1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 £ million 2024 2023 New Openings: Acquisition and development costs: Current year 3.1 4.9 10.0 26.2 11.5 18.6 19.8 32.0 27.2 38.6 76.5 64.5 Future year 7.4 5.8 10.4 24.9 9.6 31.8 7.5 14.4 13.1 16.6 30.5 33.2 Freehold re
Slide 10: Movement in Net Debt
Movement in Net Debt H1 H1 2023 2022 20212 2020 2019 2018 2017 2016 2015 2014 £ million 2024 2023 Opening Net debt 641.9 891.6 891.6 845.5 817.0 737.0 726.2 696.3 650.8 601.1 556.6 474.2 Free cash flow 6.1 (166.0) (271.1) (21.9) 83.3 58.9 (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) Disposal of fixed
Slide 11: 10 Year Debt Overview
10 Year Debt Overview H1 H1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 £ million1 2024 2023 Net Debt2 694 744 642 892 846 817 737 726 696 651 601 557 Trade and other payables 281 259 329 282 260 255 308 291 314 267 283 243 Net Debt + Trade and other 975 1,003 971 1,174 1,105 1,072 1,045 1,017
Slide 12: Property Update
Property Update H1 H1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2024 2023 Trading pubs at start of year 825 852 852 861 872 879 883 895 926 951 927 886 Freehold pubs opened – – – 7 4 2 4 6 9 10 24 31 Leasehold pubs opened 2 2 3 – 1 – 1 – 1 6 6 15 Sold or closed pubs (13) (11) (30) (16) (16)
Slide 13: People
People 41,7541 employees, 14,448 of which are shareholders. The Company paid £21.2 million in bonuses and free shares during the period, of which 99.0% paid to staff Recognised as a Top Employer United Kingdom 2024 – it is the 19th time that below board level and 89.6% to pub staff Wetherspoon has b
Slide 14: Standards
Standards • Average food hygiene score of 4.99 out of 5 across 744 pubs (not including Scotland). A total of 737 pubs have a maximum score1 • In Scotland, all of the assessed pubs have achieved the maximum score for food hygiene • Awarded the highest 3 star rating by the Sustainable Restaurant Assoc
Slide 15: CGA Brandtrack research – December 2023
CGA Brandtrack research – December 2023 JDW continues to rank as the most visited licensed brand Ranking amongst all Top 6 licenced Consumers visited licensed and unlicensed brands in GB Q4 of 2023 brands JD Wetherspoon 21.3 million 4th Nando's 12.3 million 9th Greene King 10.4 million 11th Toby Car
Slide 16: CGA Brandtrack research – December 2023
CGA Brandtrack research – December 2023 JDW has the highest conversion rate from awareness to usage amongst the biggest names in the licensed market, attracting twice as many visitors as Pizza Hut despite lower awareness Conversion Awareness Usage rate Nando’s 82% 26% 31% Greene King 60% 22% 36% 44%
Slide 17: Operating ethically and sustainably
Operating ethically and sustainably Beef is sourced from farms in the UK and Across the company, we separate waste into eight streams: glass, tins/cans, Ireland, operating under the Red Tractor and Bord cooking oil, paper/cardboard, plastic, lightbulbs, food waste and general waste. Bia quality as
Slide 18: Average weekly sales per pub including VAT (£)
Changing sales mix since 2000 60,000 £56,200 4% Average weekly sales per pub including VAT (£) 50,000 £46,500 4% Bar 38% 40,000 £37,400 Food 4% 36% Other £30,100 30,000 £28,200 5% 37% 6% £22,700 25% 29% 6% 20,000 18% 58% 60% 76% 70% 66% 59% 10,000 - 2000 2005 2010 2015 2020 H1 2024 17
Slide 19: Taxation
Taxation1 TOTAL H1 2024 2023 2022 20212 2020 2019 2018 2017 2016 2015 2015 to H1 2024 £m £m £m £m £m £m £m £m £m £m £m VAT 193.0 372.3 287.7 93.8 244.3 357.9 332.8 323.4 311.7 294.4 2,811.3 Alcohol duty 80.9 166.1 158.6 70.6 124.2 174.4 175.9 167.2 164.4 161.4 1,443.7 PAYE and NIC 65.8 124.0 141.9 1
Slide 20: Current Trading and Outlook
Current Trading and Outlook • Like-for-like sales in the last seven weeks (to 17 March 2024) were 5.8% higher than the same weeks in FY23 • Wetherspoon currently anticipates a reasonable outcome for the financial year, subject to our future sales performance The Muggleton Inn, Maidstone 19
Slide 21: Questions
wetherspoo Questions
Slide 22: Appendices
Appendices The Prince of Wales, Cardiff
Slide 23: Appendices
Appendices • A 10 year overview • B Summary of separately disclosed items • C1 ROC/CROCCE/ROE calculations • C2 ROC/CROCCE/ROE calculations 22
Slide 24: 10 Year Overview
Appendix A 10 Year Overview Number of pubs £ million Turnover 1000 2,000 950 1,800 900 1,600 850 1,400 800 951 1,925 926 1,200 1,819 1,740 895 1,661 1,694 750 883 879 872 1,514 1,595 861 852 843 825 814 1,000 700 1,262 800 916 991 650 773 600 600 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 H1 20
Slide 25: Summary of separately disclosed items
Appendix B Summary of separately disclosed items HY 2024 HY 2023 2023 £000 £000 £000 Government grants (14) - (54) Depreciation overcharge on impaired assets (4,139) - - Other operating (income)/costs (203) - 1,076 Total operating (income)/costs (4,356) - 1,022 Disposal of pubs 5,913 3,052 9,425 Imp
Slide 26: ROC/CROCCE/ROE
Appendix C1 ROC/CROCCE/ROE H1 2024 H1 2023 2023 £000 £000 £000 Shareholders equity per accounts 369,318 384,393 399,458 Deferred tax balances 64,359 56,984 65,752 Interest rate swaps valuations 9,115 9,371 (11,866) Impairment balances1 120,172 81,233 110,907 Net book value of revalued assets (2,861)
Slide 27: ROC/CROCCE/ROE
Appendix C2 ROC/CROCCE/ROE H1 20243 H1 20233 2023 £000 £000 £000 EBITDA (cash return) 1 (e) 247,716 166,052 218,887 Depreciation and amortisation1 (f) (108,562) (103,562) (109,594) EBIT1 (g) 139,154 62,490 109,293 Interest1 (65,125) (62,310) (66,734) Loss before tax1 74,029 180 42,559 Current tax1 (
Slide 28: Notes
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Slide 29: Notes
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Slide 30: 29 Walsall
29Walsall St. Matthew’s Hall,