Whitbread has published its PLC results for the six months to 27 August 2015, with Andy Harrison, Chief Executive, commenting:
“Whitbread has once again delivered double digit revenue and underlying profit growth. Group total sales grew by 11.3% to £1.4 billion with good like for like sales growth of 3.6%. This drove underlying earnings per share up 14.0% and the Board has increased the interim dividend by 13.1%.
“Our two leading brands have delivered strong organic growth and continue to win market share.
“Premier Inn, the UK’s favourite hotel chain, grew its total sales by 12.6%, combining revpar growth of 4.6% with an 8.0% increase in rooms available and maintaining strong occupancy of 83.7%.
“Costa, the UK’s favourite coffee shop chain, delivered an excellent performance, with total sales growth of 16.2% and continued strong like for like sales growth of 4.4% in our UK equity stores.
“Restaurants made progress in a soft market with total sales growth of 1.2% and like for like sales up 0.1%.
“Trading momentum in the early weeks of the second half has been consistent with that seen across the first half. We remain on track to deliver full year results in line with expectations.
“This year we plan to invest around £700 million in driving our organic growth and further improving the quality and consistency of our customer experience. We expect to open around 5,500 net new UK rooms and around 220 net new Costa stores worldwide. We continue to focus on driving long term organic growth, financed from our own resources and delivering a good return on capital to create substantial value for our shareholders.”
Financials
| H1 2015/16 | H1 2014/15 | Change | |
| Total revenue (£m) | 1,439.8 | 1,293.2 | +11.3% |
| Underlying profit before tax (£m) | 291.3 | 256.0 | +13.8% |
| Underlying basic EPS (pence) | 127.30 | 111.69 | +14.0% |
| Interim dividend (pence) | 28.50 | 25.20 | +13.1% |
| Hotels & Restaurants underlying operating profit (£m) | 249.4 | 225.0 | +10.8% |
| Costa underlying operating profit (£m) | 67.3 | 52.4 | +28.4% |
- Group like for like sales growth of 3.6%
- Premier Inn total sales growth of 12.6% and like for like sales up 5.0%
- Costa total sales growt of 16.2% and UK like for like sales up 4.4%
- Group underlying profit1 before tax up 13.8% and underlying earnings per share up 14.0%
- Group return on capital increased to 15.9% (2014/15: 15.8%)
- EBITDA up 13.6% to £389.8 million, funding capital investment of £293.3 million
- Net debt of £725.9 million (£583.2 million as at 26 February 2015) with debt leverage ratio maintained
- Interim dividend increased by 13.1% to 28.50 pence
- On track for 2018 and 2020 growth milestones
- The achievement of these growth milestones would create c.15,000 new UK jobs over the next five years
Statutory Highlights
- Profit before tax up 5.4% to £254.9 million (2014/15: £241.8 million) after exceptional charges of £25.2 million, primarily for onerous leases on historically disposed businesses and accelerated amortisation on IT systems
- Profit for the period (after tax) up 4.1% to £196.3 million (2014/15: £188.6 million)
- Total basic EPS 108.99p up 3.4% (2014/15: 105.43p)
Richard Baker, Chairman, said:
“Whitbread has produced another good set of results, demonstrating the strength of the Premier Inn and Costa brands. We are on track to deliver our growth milestones and will continue to invest in our people, our customer propositions and our systems to deliver profitable growth for our shareholders.
“I am pleased to confirm that Alison Brittain joined Whitbread as Chief Executive Designate on 28 September 2015 and, as planned, will succeed Andy Harrison as Chief Executive on 7 December 2015. I would like to take this opportunity to thank Andy on behalf of the Board and our shareholders for his outstanding contribution to Whitbread’s success over the past five years.
“Andy has focused the Company on the expansion of the successful Costa and Premier Inn brands, putting team members and customers right at the heart of Whitbread. Andy joined a good company five years ago and, when he leaves us in a few weeks, he will leave it an even better company, with excellent foundations for future profitable growth.”