Nando's has cautioned that the tax increases launched by Rachel Reeves will hit its profits, despite the company returning to profitability for the first time since 2016.
The firm reported a pre-tax profit of £38.2m for the year ending 23 February, 2025, according to new accounts filed with Companies House. This profit follows a pre-tax loss of £50.1m in the previous year.
This loss was lower than the £86.2m loss recorded in the year to February, 2023, and the £99.4m loss in the preceding year.
In the year ending February, 2021, Nando's posted a pre-tax loss of £241.7m and a loss of £99.4m in 2020, as reported by . It also reported losses of £25.1m in 2019, £20m in 2018 and £16.9m in 2017.
Before its most recent financial year, Nando's last reported a pre-tax profit in the year to February 2016, totalling £19.1m.
The accounts were published after Nando's announced last week that its revenue had risen from £1.36bn to £1.47bn.
However, the company warned that increased costs due to tax and wage rises in April are expected to affect its performance in the current financial year.
The South African-owned business also confirmed last week that it plans to open 14 new restaurants in the º£½ÇÊÓƵ during the current year.
Over the course of the year, Nando's increased its workforce from 24,878 to 25,473.
In a statement approved 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 º£½ÇÊÓƵ – sustained high cost of goods and higher energy costs have resulted in a continued challenging trading environment across the sector."
Regarding 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 º£½ÇÊÓƵ 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."
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