Whitbread sells 51 F&B sites for £56m
Reporting its interim results this morning, the group said its Accelerating Growth Plan (AGP), which is focused on optimising its F&B offer ‘to deliver a more tailored guest proposition’, is on track, with planning applications for over a third of the 3,500 extension rooms submitted.
Total F&B sales were down by 7% in the 26 weeks to 29 August 2024, in line with its expectations, reflecting the changes it has made to its branded restaurants as part of the plan, announced in April.
These, however, were partly offset by stronger trading in its integrated restaurants as a result of sustained high levels of hotel occupancy.
The most recent six weeks, to 10 October 2024, showed an improving trend across the period after a soft start in September, with total UK accommodation sales down 1% versus last year.
F&B sales were down 14% over the period, which the group said reflected the impact of its APG
Group statutory revenue for the first half of the year was £1.57bn, in line with last year, with adjusted profit before tax of £340m, compared to £391m in H1 2024.
Adjusting items before tax in the period resulted in a charge of £31m (H1 FY24: £4m credit).
As a result, statutory profit before tax was £309m (H1 FY24: £395m).
The Premier Inn operator said its H1 F2025 results reflect a slightly softer UK demand environment, investment in its AGP and lower interest receivable, partly offset by positive momentum in Germany.
It expects that by FY30 it will increase its adjusted profit before tax versus FY25 by at least £300m and generate more than £2bn for dividends, share buy-backs and, if suitable opportunities arise, additional high-returning investments.
The business is commencing a share buy-back programme of up to £100m in a bid to reduce the capital of Whitbread by returning surplus capital to shareholders and it is expected that the implementation of the programme will enhance earnings per share.
Commenting on the results, Whitbread chief executive Dominic Paul said: “We are making excellent progress with our plans and over the next five years are set to deliver a step change in our performance which will fund significant returns to shareholders.
“Demonstrating our confidence, we have today announced details of our five-year plan that sets out the scale of our ambition to FY30.
“In the UK, we have a clear pathway to further extend our market-leading position and capitalise on the favourable UK supply backdrop.
“We are determined to build on our significant outperformance since the pandemic and whilst the market has been slightly softer than last year, we remain on course to grow our UK returns substantially over the medium-term whilst continuing to deliver for our customers, as evidenced by our high guest scores.”
