12.9% sales growth in 2nd quarter6 Sep 2011 21:37
Whitbread PLC, the UK's largest hotel and restaurant group, today reported its trading performance to 18 August 2011. Whitbread delivered 12.9% sales growth in 2nd quarter.
Andy Harrison, Chief Executive, commented: "Whitbread traded strongly in the second quarter with total sales growth of 12.9%, making us one of the fastest growing consumer facing companies in the FTSE100. This growth, combined with a strong like for like sales increase of 4.8%, underscores our shareholder value creation and exciting future growth potential. Premier Inn grew its total sales by 12.5% and its like for like sales by 7.1%, with growth across the country and a strong London market. Trading in our Restaurants continues to be challenging, with customers being particularly price sensitive. Costa grew its total sales by 28.8% and continues to demonstrate that it is the UK's favourite coffee shop. We have now opened our 100th Costa store in China.
We have traded well in the first 24 weeks as a whole. On a month by month basis, trading continues to be variable with the second quarter benefitting from a strong June, whilst the first quarter was held back by a poor April. This variability is not surprising in the continuing uncertain economic environment.
Trading highlights for the 24 weeks:
Hotels and Restaurants: Premier Inn continues to win share of the hotel market with total room nights sold growing by 6.6% to 5.7 million benefitting from both good business and leisure demand. Room rate was up by 3.4%, which combined with occupancy up 0.7ppts to 79.2%, increased like for like revpar by 4.3% with growth across both midweek and the weekend. Like for like revpar grew by 11.4% in London and by 2.9% in the provinces. Restaurants delivered total covers growth of 0.8%. 1,368 new rooms and 5 restaurants opened and for the full year we plan to have opened around 4,000 new rooms and 14 restaurants in the UK.
Costa: Costa continued to deliver a strong performance growing total system sales by 22.8% to £351.3 million within which franchise sales were up 16.5% to £146.5 million. Like for like sales in UK equity stores were up 6.6% with transactions up 6.9%. Costa opened 145 new stores in the first 24 weeks. In 2011/12 we will add approximately 300 stores worldwide. The launch of Costa Express is progressing well. In the UK there are now 155 Costa Express units and we are proceeding with the rebranding of the remaining 760 Coffee Nation units.
Group: Whitbread retains a strong balance sheet capable of funding future growth. The programme to renew our borrowing facilities and diversify sources and maturities of debt continues. We have now completed the sale and leaseback of seven properties announced on 11 August. LaSalle Investment Management have paid £53.8 million in cash and entered into 25 year leases for the properties, which will continue to operate as Premier Inns and adjacent restaurants.
The shares ended the day +106p at 1563p.