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Whitbread Preliminary Results - 29th April 2014

DOUBLE DIGIT GROWTH IN REVENUE, PROFIT AND DIVIDEND

Whitbread PLC results for the financial year to 27 February 2014

Financial Highlights

  • Total revenue up 13.0% to £2,294.3 million (2012/13: £2,030.0 million)
  • Group like for like sales1 up 4.2% 
  • Underlying profit2 before tax up 16.5% to £411.8 million (2012/13: £353.4 million3)
  • Underlying basic EPS2 up 20.1% to 179.02p (2012/13: 149.10p3)
  • Full year dividend up 19.9% to 68.80p (2012/13: 57.40p)
  • Whitbread Hotels and Restaurants profits4 up 11.2% to £348.1 million, Costa profits4 up 21.9% to £109.8 million
  • Premier Inn total sales up 13.4% and like for like sales1 up 5.0%
  • Costa total sales up 20.1% and like for like sales1 up 5.7%
  • Group return on capital5 up 1.4% pts to 15.3%
  • Strong cash flow from operations6 of £601.3 million funded capital investment of £306.2 million and 19.9% dividend growth
  • Year end net debt down by £79.5 million to £391.6 million

Statutory Highlights

  • Profit after tax and exceptional items up 10.7% to £323.4 million (2012/13: £292.1 million3)
  • Total basic EPS up 10.4% to 182.98p (2012/13: 165.71p3)

On track for 2016 and 2018 growth milestones

  • Premier Inn now has 55,035 UK7 rooms, up 6.5% in the year with a committed pipeline of c.11,500 rooms
  • Costa system sales increased by 19.4% to £1.2 billion
  • Around 3,000 net new UK jobs created in 2013/14

  

Anthony Habgood, Chairman, said:

“This is another set of good results. Once again strong cash flow funded the necessary capital investment for our growth engines, Premier Inn and Costa, to increase their share of the market. We have recommended an increase in the full year dividend of 19.9% while maintaining a prudent balance sheet structure. I am confident that the brand strength of Premier Inn and Costa will continue to fuel the Company’s growth into the future.”

Andy Harrison, Chief Executive, said:

"Whitbread has delivered another year of strong double digit growth, with total sales up 13.0%, underlying pre tax profits up 16.5% and EPS up 20.1%. This, combined with our good cash flow, has led the Board to recommend a full year dividend increase of 19.9%. This extends our track record of double digit growth, with sales growing by 11.4% over the last five years and EPS and dividends per share growing by 14.7% and 13.5% respectively. This success is built on our two strong brands Premier Inn, the UK’s favourite hotel chain and Costa, the UK’s favourite coffee shop and our 43,000 team members who work so hard to deliver a consistently good customer experience.

We continue to invest in improving our customer propositions and international expansion. This includes the rollout of our “best ever bed” in Premier Inn, the launch of “hub by Premier Inn” and rejuvenating our restaurant brands. In Costa we are focussed on international growth in China and France and our rebranding in Poland, together with the continuing growth of Costa Express.

We had a strong finish to last year, with all our brands performing well, boosted by good Christmas and New Year campaigns and helpful weather comparatives. The first two months of the new financial year have started positively, with good trading again helped by relatively soft comparatives which will become tougher as we move into the second half of this year.

We remain on track to deliver our 2016 and 2018 growth milestones for both Premier Inn and Costa which, combined with our clear focus on returns, will create substantial shareholder value.”

View the full preliminary press release 13/14 (pdf, 189kb)

For Further Information, please contact:

Whitbread

Nicholas Cadbury, Group Finance Director + 44 (0) 20 7806 5491

Anna Glover, Director of Communications +44 (0) 1582 844 244

Joanne Russell, Director of Investor Relations +44 (0) 1582 888 633

Tulchan

David Allchurch/Will Smith + 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 and underlying EPS

Underlying profit excluding amortisation of acquired intangibles, exceptional items and the impact of the pension finance cost as accounted for under IAS 19. Underlying EPS represents the earnings per share based on the above underlying profit definition and the tax thereon.

3     Restated for the impact of IAS 19 (revised 2011), see note 3 of the financial statements

4     Underlying operating profit before exceptional items

5      Return on capital

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.

6     Cash flow from operations

Cash generated from operations in the financial statements excluding the pension payments

7    Premier Inn UK includes one hotel in Ireland with 155 rooms

8    Allegra Strategies Project Cafe 2013 report, published December 2013

Favourite coffee shop, based on a sample of 4,650 consumers from an independent coffee shop visitor panel

9    YouGov - Hotel BrandIndex

Hotel BrandIndex index measure when compared against our direct competitors, based on data for 2013/14 using a 52 week rolling average

10    STR Global – UK Midscale and Economy sector

Further information

For photographs and videos, please visit the corporate media library:

www.whitbreadimages.co.uk

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 and a live webcast of the presentation will be available on the investors' section of the website at: http://www.whitbread.co.uk/investors