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Press releases 2014

21 Oct 2014

Whitbread Interim Results - 21 October 2014



Financial Highlights

  • Total revenue up 13.0% to £1,293.2 million (2013/14: £1,144.7 million)
  • Group like for like sales1 up 7.0%
  • Underlying profit2 before tax up 18.5% to £256.0 million (2013/14: £216.1 million)
  • Underlying basic EPS up 21.5% to 111.69p (2013/14: 91.94p)
  • Interim dividend up 15.6% to 25.20p (2013/14: 21.80p)
  • Hotels and Restaurants underlying profit2 up 15.0% to £225.0 million (2013/14: £195.7 million)
  • Costa underlying profit2 up 20.5% to £52.4 million (2013/14: £43.5 million)
  • Premier Inn total sales up 14.7%, like for like sales1 up 9.6% and total revpar up 8.8%
  • Costa total sales up 16.9%, worldwide system sales up 15.5% and like for like sales1 up 6.1%
  • Group return on capital3 increased to 15.8% (2013/14: 14.4%)
  • Strong cash flow with EBITDA4 up 17.1% to £343.1 million (2013/14: £293.0 million)
  • Strong balance sheet: net debt £467.2 million (£391.6 million at 27th February 2014)

Statutory Highlights

  • Profit after tax and exceptional items up 7.2% to £188.6 million (2013/14: £175.9 million). Last year’s profit benefited from an exceptional deferred tax credit of £25.1million following the decrease in the corporation tax rate
  • Total basic EPS 105.43p up 6.1% (2013/14: 99.33p)

Investing for future profit growth

  • On track for 2016 and 2018 growth milestones
  • Expected capital expenditure of around £500 million this year, growing our hotel pipeline and Costa estate and further improving our customer experience
  • Building Premier Inn and Costa international profit growth platforms
  • 1,300 new UK jobs created by Whitbread brands, with a further 10,000 expected over the next three years

Richard Baker, Chairman, said:

“These results build on our strong growth in profits and dividends over the last five years and show the benefit of long term investment in our growth engines – Premier Inn and Costa. The Board is clear that the financial success of Whitbread is also based on its values, looking after its team members and putting the customer at the heart of everything we do. As Chairman of Whitbread, I am determined to maintain these values to the benefit of employees, customers, shareholders and all of our stakeholders.”

Andy Harrison, Chief Executive, said:

“This is a very good set of first half results with total sales growing by 13.0%, driving an 18.5% increase in underlying pre-tax profits. This profit growth converted into strong cash generation with EBITDA4 up 17.1%, boosted by a 1.4% pts increase in our return on capital to 15.8%. Our cash flow is funding our double digit dividend growth and rapid organic expansion which will drive our future profit growth.

Our two market leading brands, Premier Inn and Costa, go from strength to strength and continue to win market share. Premier Inn delivered total sales growth of 14.7% with like for like sales1 growth of 9.6% and record UK7 occupancy at 84.0%. Costa delivered total sales growth of 16.9% with like for like sales1 growth of 6.1% in our UK stores, driven by a 5.0% increase in customer transactions. Our Restaurants business grew its total sales by 4.3%, performing ahead of its industry benchmark5.

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. The comparatives become more demanding, especially in the fourth quarter, due to the benign winter weather last year which caused minimal trading disruption.

This financial year we expect to invest around £500 million in driving our organic growth and further improving the quality and consistency of our customer experience. We expect to open around 4,500 new Premier Inn UK rooms and around 230 net new Costa stores worldwide. This keeps us on track to achieve our ambitious growth milestones.”

Click here to download the full press release (442KB)

For further information contact:


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


David Allchurch, + 44 (0) 20 7353 4200


There will be a presentation to analysts and investors at 9.30am at Nomura, 1 Angel Lane, London, EC4R 3AB. A live webcast of the presentation will be available from the investors’ section of the Whitbread website:



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 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 28th August 2014 by net assets as at that date adding

back debt, taxation liabilities and the pension deficit.


Underlying operating profit before exceptional items of £263.6 million plus underlying depreciation

and amortisation of £79.5 million.

5 Coffer Peach benchmark outside of the M25

6 Cash flow from operations

Cash generated from operations as shown in the financial statements excluding the pension


7 Premier Inn UK

Includes one hotel (155 rooms) in Ireland

Further information

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