Total sales growth of 10.4%. On track to deliver full year results in line with expectations
Whitbread PLC today reports its trading performance for the 50 weeks to 11 February 2016, which forms part of the 53 week year ending on 3 March 2016.
Sales update (% change vs. prior year)
Sales for the 11 weeks to 11 February 2016 |
Sales for the 50 weeks to 11 February 2016 | |||
| Like for like sales*¹ | Total sales | Like for like sales*¹ | Total sales | |
| Premier Inn | 2.2% | 7.3% | 4.4% | 11.1% |
| Restaurants | 2.3% | 3.1% | 1.0% | 2.2% |
| Hotels and Restaurants | 2.2% | 5.8% | 3.3% | 8.2% |
| Costa | 0.5% | 10.5% | 3.0% | 14.2% |
| Total | 1.7% | 7.7% | 3.2% | 10.4% |
Alison Brittain, Chief Executive of Whitbread, comments:
“Whitbread has had another good trading period, delivering year to date total sales growth of 10.4% and like for like sales growth of 3.2%. We expect to report full year profit in line with expectations.
In the quarter, Premier Inn had a good performance growing total sales by 7.3% with occupancy rising by 0.3% pts to 71.4% and rooms available increasing by 6.9%. Like for like sales grew by 2.2%, which is ahead of our like for like revpar growth at 0.4%, as we benefitted from our substantial, higher returning, hotel extensions programme. Costa had good total sales growth of 10.5% and like for like sales growth of 0.5% reflecting lower footfall on the high street and an unusually warm winter.
In the year ahead, as we build towards our growth milestones, we will continue to invest in improving our customer propositions, our digital and IT capabilities and in our winning teams to ensure we maintain our market leading positions. This will deliver long term profitable growth and sustainable returns for our shareholders.”
Trading highlights:
Hotels and Restaurants
- Premier Inn has continued to win UK market share, growing total sales*2 for the 50 weeks by 11.1%, like for like sales by 4.4%, total revpar by 3.6% and the number of rooms available by 7.6%. Total occupancy remained high, in line with last year, at 81.1% and total room nights sold increased by 7.4% to 17.0 million.
- In the quarter, Premier Inn grew total sales by 7.3%, driven by a 6.9% increase in the number of rooms available, and occupancy increased by 0.3% pts to 71.4%. Like for like sales grew by 2.2%, ahead of our like for like revpar growth of 0.4%, due to our substantial extensions programme.
- Following the trend we highlighted in December, the market has continued to show a divergence in performance in the quarter between the regional and London hotel markets. In the regions Premier Inn grew total sales by 8.3%, with a 6.8% increase in rooms available, including c.2% from extensions. Total and like for like revpar grew by 1.5% and 1.4% respectively. Our regional occupancy remained high compared to the market at 70.6%, up 0.5% pts year on year. Total regional market revpar grew by 3.4% and the Midscale and Economy*3 sector grew total revpar by 4.5%.
- In London, despite a softer hotel market, Premier Inn grew total sales by 3.6% in the quarter, with an 8.0% increase in rooms available. Our total London revpar and occupancy declined, broadly in line with the market, by 3.6% and 1.5% pts respectively albeit our occupancy remained high at 76.1%. Total London market revpar declined by 3.3% and revpar for the Midscale and Economy sector was down 2.2%.
- Restaurants delivered total sales growth of 2.2% and like for like sales growth of 1.0% for the 50 weeks, ahead of our competitor set*4.
Costa
- Costa grew its worldwide total sales by 14.2% and like for like UK sales by 3.0% for the 50 weeks.
- Year to date Costa grew worldwide system sales by 13.1% to £1,516 million (13.4% at constant currency). Within this, franchise system sales grew by 10.6% to £572 million.
- UK Retail system sales, grew by 14.1% to £833 million with equity stores growing like for like sales by 3.0%. We opened 103 net new UK stores.
- Costa Enterprises (including Costa Express UK & International) delivered system sales of £374 million, up 12.6%. Costa Express maintained its success with the installation of afurther 921 Costa Express machines*5 taking the total to 5,213.
- International system sales grew by 11.0% to £309 million (12.4% at constant currency). 79 net new stores were opened in the period with 41 in EMEI and 38 in Asia.
Group
This year we shall open around 5,500 new UK Premier Inn rooms, including c.1,500 rooms from extensions, and plan to open a further c.5,000 new UK rooms next year, including c.1,700 rooms from our hotel extensions programme, which will have a c. 1% impact on our like for like revpar. For Costa this year we expect to open c.200 net new stores worldwide and install around 950 Costa Express machines and we plan to open a further c.230 net new stores worldwide and install around 1,000 Costa Express machines next year.
Over the next year, as previously advised, we are planning an additional P&L investment, which we estimate to be c.£15 million. Our capital investment of c.£700 million will remain broadly the same as we continue to drive our organic growth and further improve the quality and consistency of our customer offer. Our strong freehold backing provides us the opportunity to recycle capital and we expect to carry out a sale and lease back transaction during next year. We remain on track to deliver on our growth milestones, which will enable us to create sustainable shareholder value.
Our strong financial position remains unchanged.
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