Another strong performance from Whitbread
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Hotels, restaurants and coffee shop operator, Whitbread, released its interim management statement today (17th June), and, it showed that the company has indeed had a good start to the year.
Whitbread boasted strong sales growth during the period, helped by decent performance across its businesses, with Premier Inn a stand out performer on a like-for-like sales growth basis.
Shares of the company are currently up on the back of its latest market update.
Hotels, restaurants and coffee shop operator, Whitbread, released its interim management statement today (17th June).
For the thirteen weeks to 29th May, Whitbread boasted around a 13% rise in total group revenue, the increase was 6.9% on a like-for-like basis.
By business, total sales at Premier Inn grew some 14% over the same period last year, with like-for-like sales growth coming in at 9.5%.
That was thanks to strong customer demand, driven by a “buoyant London market and clearer signs of economic recovery in the UK regions”, which helped grow Premier Inn’s total revenue per available room (RevPar) by 8.8%.
The company’s Costa coffee business also bragged strong performance; with total sales in that division having grown by some 16% – like-for-like sales growth came in at 4.5%.
Whitbread’s restaurant business (which includes brands such as Beefeater and Table Table), meanwhile, saw total sales grow 5.4% and like-for-like sale increase by 4.4%.
Looking ahead, Whitbread is confident that it is well positioned for another good year, helped by its expansion efforts.
That expansion plan includes the 43 new Premier Inn hotels that are under construction in the UK, with expectations to open around 4,500 new rooms this year; as well as plans to open around 300 new Costa stores and 600 Costa Express units this year.
Shares of Whitbread are up around 3% (at time of writing) on the back of the company’s latest update.
That brings the total ascent of Whitbread’s shares over the last year to around a notable 47%.
Indeed, Whitbread has had something of a good run of late – partly helped by the recovering economy – and it certainly bodes well that the company isn’t resting on its laurels: its aims by 2018 to grow the number of Premier Inn UK rooms to 75,000 (as at April, it was some 55,000) and double the size of Costa global system sales.
With a relatively healthy balance sheet, Whitbread certainly has the wherewithal to continue pushing ahead with those efforts as it positions to capture further growth.