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Whitbread Interim Results - 22 October 2013

WHITBREAD PLC RESULTS FOR THE SIX MONTHS ENDED 29TH AUGUST 2013

WHITBREAD DELIVERS DOUBLE DIGIT SALES, PROFIT AND DIVIDEND GROWTH

  

Financial Highlights

·         Total revenue up 12.4% to £1,144.7 million (2012/13: £1,018.1 million)

·         Group like for like sales1 up 2.8%

·         Underlying profit2 before tax up 12.6% to £216.1 million (2012/133: £191.9 million)

·         Underlying diluted EPS up 12.2% to 90.92p (2012/133: 81.04p)

·         Interim dividend up 11.8% to 21.80p (2012/13: 19.50p)

·         Whitbread Hotels and Restaurants underlying profit2 up 7.9% to £195.7 million (2012/13: £181.3 million)

·         Costa underlying profit2 up 20.5% to £43.5 million (2012/13: £36.1 million)

·         Premier Inn total sales up 12.2% and like for like sales1 up 3.3%

·         Costa total sales up 20.9%, worldwide system sales up 19.5% and like for like sales1 up 5.5%

·         Group return on capital4 increased to 14.4% (2012/133: 13.7%)

·         Strong cash flow from operations5 up 7.9% to £307.7 million (2012/13: £285.3 million)

·         Net debt £430.1 million (£471.1 million at 28th February 2013);

Statutory Highlights:

·         Profit after tax and exceptional items for the half year up 4.5% to £175.9 million (2012/133: £168.3 million)

·         Total basic EPS 99.33p up 4.2% (2012/133: 95.32p)

  

On track for our 2016 and 2018 milestones

·           Premier Inn6 opened 1,368 net UK rooms taking the total to 53,039. With a secured pipeline of over 10,500 rooms the 2016 milestone of 65,000 rooms is in sight

·           Costa added 153 net new coffee shops taking the total to 2,680 worldwide

·           1,200 new UK jobs created by Whitbread brands, with a further 10,000 expected over the next three years

  

Anthony Habgood, Chairman, said:

“This is another good set of results with our leading brands going from strength to strength. We continue to have high levels of customer satisfaction and brand preference together with excellent employee engagement. Our financial strength enables us to invest consistently in the business and gain market share while maintaining prudent debt levels.  We have increased the interim dividend by 11.8%.”

  

Andy Harrison, Chief Executive, said:

“Whitbread has delivered another good performance with double digit growth.  The combination of organic network expansion and good like for like sales growth, drove a 12.6% increase in underlying pre-tax profits.  Since the onset of the recession in 2008/9, Whitbread has grown its sales and underlying pre-tax profits by 11.1% and 12.0% per annum respectively, demonstrating the strength of the business and our leading market positions.

Our two growth engines, Premier Inn and Costa, performed well. Premier Inn, the UK's leading hotel chain, continued to win market share, opening 12 new hotels. This contributed to a total sales increase of 12.2%, with especially strong growth in London where sales grew by 18.4%. Like for like sales grew by 3.3% with an increase in occupancy to 80.3%. We also opened three new joint site restaurants and our Restaurants business performed in line with a challenging market7, with total sales up 2.9%. Costa, the UK's favourite coffee shop, continued its excellent performance, opening 153 net new stores worldwide and growing total system sales by 19.5%. UK system sales grew by 19.6%, with strong consumer demand driving a 5.5% growth in UK like for like sales. We celebrated the opening in Bangkok of our 1,000th Costa international store. 

This good first half performance puts us on track to deliver this year’s business plan and we remain on the right trajectory for our 2016 and 2018 growth milestones. Our combination of strong organic growth, good returns on capital and strong cash flow should continue to create substantial shareholder value.”

  

View the full Interim results 2013/14 press release (PDF, 418kB)

  

For further information:

A presentation for analysts will be held at Nomura, 1 Angel Lane, Upper Thames Street, London, EC4R 3AB. The presentation is at 08.45 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/reports-and-presentations/results.html

Whitbread

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

Anna Glover, Director of Communications           +44 (0) 7768 917651

Joanne Russell, Director of Investor Relations     +44 (0) 7785 451266

Tulchan

David Allchurch        + 44 (0) 20 7353 4200

  

We will host a Costa Investor Day on the 12th December 2013.

  

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 (revised).

3 Restated for the impact of IAS 19 (revised 2011), see note 1 of the interim consolidated financial statements

 Return on capital

Return on capital is the return on net assets which is calculated by dividing the underlying profit before interest and tax for the 12 months to 29th August 2013 by net assets at 29th August 2013 adding back debt, taxation liabilities and the pension deficit.

5  Cashflow from operations

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

6  Premier Inn UK includes one hotel (which is 155 rooms) in Ireland

 Coffer Peach tracker outside of the M25

8  STR Global – UK Midscale and Economy sector

  

Further information:

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

www.whitbreadimages.co.uk