Whitbread Plc – Trading Statement

DJ Whitbread PLC Trading Statement

 Whitbread Chief Executive, Alison Brittain said,
  “Whitbread delivered total sales growth of 8.0% in the first quarter as we continue with a relentless focus on our customers, innovation and investing in our strong brands. Costa has started the year well and Premier Inn continues to win share, albeit in a weaker than expected hotel market.
  Industry data has continued to show a soft hotel market in the UK, particularly in London.  During the quarter Premier Inn grew total sales by 8.0% and like for like sales by 2.1%, which benefited from our substantial hotel extension programme. Against a strong comparator Premier Inn like for like revpar declined by 0.5% and total revpar declined by 1.2%. This reflects the market environment, the expected dilution of the impact of the extension programme and the c.3,600 new rooms added in the final quarter of last year, which will mature over the next few years. We are on plan to open 4,000-4,500 new hotel rooms in 2016/17.
  Costa grew total sales by 11.5% with UK retail like for like sales growth recovering to 2.6%. We remain on plan to open 230-250 Costa stores worldwide and have increased our target to install at least 1,250 new Costa Express machines this year.
  Although it is early in our new financial year and despite current market conditions, with the benefit of our cost efficiency programme we remain confident of making good progress for the full year.”
  Trading highlights for the 13 weeks:
  Hotels and Restaurants
  —     In the quarter, Premier Inn grew total sales by 8.0 % and like for like sales by 2.1% benefitting from the extension programme.
  —     Like for like revpar for the quarter was down 0.5% impacted, as expected,  by our substantial hotel extension programme and as stated above Premier Inn total revpar declined by 1.2%, with occupancy down 1.5% pts year on year to 79.1%. Revpar was up 1.2% for the total market(*3) and up 1.6% for the Midscale and Economy market(*3) .
  —     In London Premier Inn grew total sales by 5.6% in the quarter. Premier Inn like for like revpar was down 3.0 % reflecting a soft market and the impact of our extension programme. Total revpar was down 6.0 %, diluted by the high number of rooms which were opened in the final quarter of last year. Revpar was down 1.6% for the total market(*3) and down 3.5% for the Midscale and Economy market(*3) .
  —     In the regions Premier Inn grew total sales by 8.5%. Like for like revpar was up by 0.3 % again impacted by our hotel extension programme whilst total revpar was down 0.2 % again diluted by the number of rooms opened in the final quarter of last year. Revpar was up 3.2% for the total market(*3) and up 3.0% for the Midscale and Economy market(*3) .
  —     Restaurants delivered total sales growth of 1.4% and like for like sales growth of 0.2%, slightly ahead of a soft pub restaurant market outside the M25.
  Costa
  —     Costa had a good start to the year, growing total system sales by 11.4% to GBP414.3 million, 10.7% at constant currency). Within this, franchise system sales grew by 10.5% to GBP158.7 million.
  —     UK Retail system sales, grew by 11.4% to GBP226.5 million with equity stores growing like for like sales by 2.6%. We opened 35 net new UK stores.
  —     Costa Enterprises (including Costa Express UK & International) delivered system sales of GBP103.1 million, up 11.2%. Costa Express maintained its success installing a record 448 Costa Express machines*(5) in the quarter taking the total number of machines to 5,664.
  —     International system sales grew by 11.5% to GBP88.3 million (8.5% at constant currency). In China we remain excited about the long term growth opportunity although recently we have seen a tougher trading environment, due to a weaker Chinese economy. We opened 18 net new stores in the quarter with 11 in EMEI and 7 in Asia.

 

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