Nando’s has warned Rachel Reeves’ tax hikes will eat into its bottom line despite it returning to profit for the first time since 2016.
The business has posted a pre-tax profit of £38.2m for the 12 months to 23 February, 2025, new accounts filed with Companies House have revealed.
The profit comes after the restaurant chain made a pre-tax loss of £50.1m in the prior year.
That figure itself was down from the loss of £86.2m it made in the year to 26 February, 2023, and £99.4m in the year before that.
In the 12 months ending February, 2021, Nando’s made a pre-tax loss of £241.7m and lost £99.4m in 2020.
It also ostensibly £25.1m in 2019, £20m in 2018 and £16.9m in 2017.
Prior to its latest financial year, Nando’s last made a pre-tax profit in the year to February 2016 with a total of £19.1m.
Nando’s issues warning after Reeves tax hikes
The accounts have been published after Nando’s announced last week that its revenue had increased from £1.36bn to £1.47bn.
It also warned that increased costs, following tax and wage rises in April, are to impact its performance during its current financial year.
The South African-owned business also confirmed last week that it is looking to open 14 new restaurants in the UK during its current year.
While announcing its operating profit had more than doubled from £59.8m to £146.6m, Nando’s did not reveal any other financial figures.
During the year, Nando’s increased its headcount from 24,878 to 25,473.
In a statement signed off by the board, Nando’s said: “While cost pressures remained a challenge and are continuing into the current trading year ending February 2026, the group has managed these pressures effectively.
“Most significantly wage inflation – including increases to National Insurance contributions in the UK – sustained high cost of goods and higher energy costs have resulted in a continued challenging trading environment across the sector.”
On its current trading, Nando’s added: “In the first half of the financial year ending February 2026, sales across the group continued to grow and we have been encouraged by customer demand, nevertheless cost inflation remains at elevated levels.
“The group is actively managing the impact of continued cost pressures through a combination of group-wide and local market initiatives, including productivity gains and the roll out of energy efficient grills in our UK and Ireland estate.
“While these actions have been effective in mitigating some of the impact, we anticipate that cost pressures will continue to affect our overall performance in the current financial year.”