Whitbread flexes industry muscle as sales soar to £2.9 billion

Costa store

Latest financial results for Whitbread reveal the company turned in sales of a staggering £2.9 billion last year, up 12% on the previous year.

It also recorded 11.9% growth in underlying profit before tax to £546.3m for the 53 week financial period to 3 March.

The Premier Inn brand opened a record 5,461 new UK during the year and grew total sales by 13%, like for like sales by 4%, total room revpar by 3% and the number of rooms available by 10%.

Story continues below

Premier Inn restaurants also did well financially with total sales up 3.5% and like for like sales up 1%.

Costa’s underlying operating profit was up 15.8% to £153m, with total sales growth of 16%. This was driven by UK like-for-like sales growth of 3%, 197 net new stores worldwide and 924 net new Costa Express machines.

Richard Baker, chairman, said: “With another good set of results, that continue to show the strength of Whitbread’s brands, the board is pleased to announce an increase in the full year dividend of 10%.

“This is a very exciting time for the Company; with our recent senior appointments, we now have a refreshed leadership team, and I am delighted it is being led by Alison Brittain as CEO, to take us on the journey to building a bigger as well as a better Whitbread.”

Chief executive, Alison Brittain, said: “Whitbread has had another successful year with good growth in sales of 12% and underlying earnings per share increasing by 11.7%, once again demonstrating the strength of our businesses.”

“Both Premier Inn and Costa benefit from attractive market growth opportunities and we will continue to capitalise on these by developing our network and brand strength as we fulfil our ambitions to reach c.85,000 UK hotel rooms and c.£2.5 billion system sales in Costa, by 2020.

“The world around us is shifting, with rising customer expectations, an evolving competitor landscape, rapid technological developments and changing cost structures. In responding to this change, I am especially keen to reinforce our relentless focus on our customers and on innovation to develop our brand propositions ensuring we stay ahead and become more productive.

Brittain said she has identified three key strategic themes to develop its business: grow and innovate in its core UK businesses; focus on its strengths to grow internationally; and build the capability and infrastructure to support long-term growth. “This strategy will enable us to deliver our significant growth ambitions, grow earnings and dividends, maintain good returns on capital and create further value for our shareholders,” she said.

While the company is only six weeks into its new financial year, Brittain said it “remains confident” of making good progress this year.

Tags : CostaFinancial ResultsPremier InnWhitbread
Andrew Seymour

The author Andrew Seymour

Leave a Response