Whitbread Q1 trading update
Group total sales growth of 3.2% and good progress with efficiency savings
- Expect to deliver full year results in-line with expectations
- Premier Inn UK total accommodation sales growth of 4.3% driven by investment in new hotels
- Costa UK total sales growth of 5.2% through new store growth and Costa Express expansion
- Good progress in preparing Costa to be demerged from Whitbread
|UK like-for-like1 Sales Growth||UK Total Sales Growth||UK & International2Total Sales Growth|
|Food & beverage||(1.9)%||(0.4)%||(0.4)%|
|Costa (Stores & Express)||(2.0)%||5.2%||4.9%|
¹Costa UK like‐for‐like includes UK equity stores and Costa Express UK only
2Includes Germany, recently exited operations in India and Southeast Asia and other international fees
Alison Brittain, Whitbread PLC Chief Executive, said:
“Whitbread has started the year growing total Group sales by 3.2%. We expect to deliver in-line with expectations for the full year and we continue to make strong progress on our efficiency programme.
Premier Inn UK delivered total accommodation sales growth of 4.3% driven by additional capacity. The hotel market was weaker in the first quarter due to strong comparable data this time last year and increased supply, including significant room openings from Premier Inn. Our new capacity has a short-term impact on like-for-likes but delivers good long-term sales growth. Forward bookings have improved recently, supported by the robust business to business market and comparatives ease later in the year. Our F&B sales declined slightly due to lower footfall from adverse weather.
Costa UK grew total sales by 5.2% in the quarter through the strong contribution from new stores and Express machines. We continue to actively rebalance our network to high-footfall and convenient locations and have made good progress with our product innovation and operational initiatives. Our stores remain highly profitable and deliver an excellent return on capital. Costa Express continues to perform well and like-for-like sales in China are growing.
Both the budget hotel market and the coffee market present long-term structural growth opportunities, and whilst we are cautious of shorter-term trading conditions in the UK, due to well-publicised consumer trends, we are confident that we have the right strategies in place to enhance our UK and international market positions and ensure each business is well-positioned to thrive as a separate entity.”
Update on Costa demerger
In April 2018, Whitbread committed to demerge Costa from Whitbread as fast as practical and appropriate to optimise value for shareholders. Constructive early steps have been taken in preparation for the demerger and good progress continues to be made on the core infrastructure and efficiency work that was already underway. A further update on the demerger will be provided alongside the interim results in October 2018.
For more information please contact:
Matt Johnson, Whitbread PLC | firstname.lastname@example.org | +44 (0) 7848 146 761
Ann Hyams, Whitbread PLC | email@example.com | +44 (0) 7796 709 087
Matt Holman, Whitbread PLC | firstname.lastname@example.org | +44 (0) 7712 243 322
Anna Glover, Whitbread PLC | +44 (0) 7768 917 651
Andrew Grant / Jessica Reid, Tulchan Communications | +44 (0) 20 7353 4200