30 April 2013
DOUBLE DIGIT INCREASE IN REVENUE, PROFIT AND DIVIDEND
NEW GROWTH MILESTONES FOR 2018
Whitbread PLC results for the financial year to 28 February 2013
• Total revenue up 14.2% to £2,030.0 million (2011/12: £1,778.0 million).
• Group like for like sales1 up 3.7%.
• Underlying profit2 before tax up 11.4% to £356.5 million (2011/12: £320.1 million).
• Underlying basic EPS up 12.0% to 150.45p (2011/12: 134.35p).
• Full year dividend up 12.0% to 57.40p (2011/12: 51.25p).
• Whitbread Hotels and Restaurants profits3 up 5.9% to £313.1 million, Costa profits3
up 29.3% to £90.1 million.
• Premier Inn total sales up 13.1% and like for like sales1 up 3.1%.
• Costa total sales up 24.1% and like for like sales1 up 6.8%.
• Group return on capital4 up 0.4%pts to 14.0%.
• Strong cash flow from operations5 of £526.0 million funded capital investment of £343.6 million and
supports a 12.0% dividend growth.
• Year end net debt down by £33.2 million to £471.1 million.
• Profit after tax and exceptional items up 13.3% to £301.3 million (2011/12: £266.0 million).
• Total basic EPS 170.89p up 12.8% (2011/12: 151.53p).
New 2018 Growth Milestones
• Premier Inn UK6 rooms to grow by 45% to c75,000 in 2018.
• Costa system sales to double to around £2.0 billion in 2018.
• 3,000 net new UK jobs created in 2012/13, with a further 12,000 expected over the next five years.
Anthony Habgood, Chairman, said:
“Whitbread has grown its total sales in the year by over 14% and continued to produce strong operating cash flows of over £500 million. This has funded both significant organic investment to grow our businesses and a double digit percentage increase in our dividends while maintaining prudent debt levels. With the Premier Inn and Costa brand propositions going from strength to strength this growth is set to continue.”
Andy Harrison, Chief Executive, said:
"This is another set of excellent Whitbread results, delivering double digit growth in sales, profit and dividend. Over the last five years, throughout the worst of the economic downturn, Whitbread has grown its sales by 11% per annum and profits by 12% per annum, together with 12% per annum growth in dividends. Return on capital has also increased from 11.4% to 14.0% over that period.
In April 2011 we established ambitious milestones to grow Premier Inn UK rooms by 50% to 65,000 rooms and to double Costa's worldwide system sales to £1.3bn. We are well on track to achieve these milestones and have announced new 2018 milestones to grow Premier Inn UK by 45% to around 75,000 rooms and to double Costa's system sales to around £2bn. This exciting organic growth opportunity, together with a clear focus on returns, will continue to create substantial shareholder value.
In the first few weeks of our new financial year, Group trading has been in line with our plan. Premier Inn has maintained its positive momentum. The unseasonably cold weather has held back sales within Restaurants, and benefitted Costa."
For further information contact:
Nicholas Cadbury, Group Finance Director +44 (0) 20 7806 5491
Anna Glover, Director of Communications
Joanne Russell, Director of Investor Relations +44 (0) 1582 844 244
+44 (0) 1582 888 633
David Allchurch/Rebecca Scott + 44 (0) 20 7353 4200
1 Like for like sales
Stated pre IFRIC 13 adjustment for Premier Inn – UK and Ireland, Costa and Restaurants - UK
2 Underlying profit
Underlying profit excluding amortisation of acquired intangibles, exceptional items and the impact of the
pension finance cost as accounted for under IAS 19.
3 Underlying operating profit before exceptional items
4 Return on capital (ROIC)
Return on capital is the return on invested capital which is calculated by dividing the underlying profit
before interest and tax for the year by net assets at the balance sheet date adding back debt, taxation
liabilities and the pension deficit.
5 Cash flow from operations
Cash generated from operations in the financial statements excluding the pension payments
6 Premier Inn UK includes one hotel in Ireland with 155 rooms
7 STR Global – UK Midscale and Economy sector
A presentation for analysts will be held at Nomura, 1 Angel Lane, Upper Thames Street, London, EC4R 3AB. The presentation is at 9.30 am on 30 April 2013 and a live webcast of the presentation will be available on the investors' section of the website at: http://www.whitbread.co.uk/investors