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Whitbread reports increase in profit and sales

21 October 2014 by
Whitbread reports increase in profit and sales

Whitbread has reported an increase in like-for-like sales, and profit before tax, in its financial results for the six months to 28 August 2014.

The group's like-for-like sales were up 7%, while profit before tax was up 18.5% to £256m, compared with £216.1m at the same time last year.

Its hotels and restaurants profit was up 15%, to £225m compared to 2013's figure of £195.7m, while it also highlighted a significant profit for its Costa Coffee business, which saw an increase of 20.5% to £52.4m, and an increase in like-for-like sales of 6.1%.

Its Premier Inn business sales also reported an increase, with like-for-like up 9.6%, and total revpar up 8.8%.

Overall, the group's profit after tax was up 7.2% to £188.6m, and total sales grew by 13%.

The results come as the group confirms it is on track for its 2016 and 2018 growth aims, which include increasing its hotel pipeline, and adding more sites to its Costa estate, both in the UK and abroad. The company confirmed that it expected to invest £500m in driving growth over the next year, and expected to open 4,500 new Premier Inn UK rooms, and 230 new Costa stores across the world.

Whitbread chairman Richard Baker said: "These results build on our strong growth in profits and dividends over the past five years and show the benefit of long term investment in our growth engines - Premier Inn and Costa."

He added that he felt the company's success was also due to its commitment to looking after its team members, employees and customers.

Chief executive, Andy Harrison, said that the group's strong cash flow would help drive future growth, and cited Costa and Premier Inn as the company's main drivers in that strength.

He said: "The trading momentum of our strong first half performance has continued into the first few weeks of the second half and positions Whitbread well to deliver full year results in line with expectations. This keeps us on track to achieve our ambitious growth milestones."

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