TIDMWTB
RNS Number : 3450Y
Whitbread PLC
08 September 2015
8 September 2015
WHITBREAD TRADING STATEMENT
Good second quarter trading with total sales up 11.1%,
on track for full year expectations
Whitbread PLC today reports its trading performance for the 24
weeks to 13 August 2015.
Sales update (% change vs. prior year)
Sales for the 11 weeks Sales for the 24 weeks
to 13 August 2015 to 13 August 2015
Like for like Total sales Like for like Total sales
sales*(1) sales*(1)
-------------- ------------ -------------- ------------
Premier Inn 4.3% 11.6% 5.3% 12.9%
-------------- ------------ -------------- ------------
Restaurants 0.6% 2.0% 0.3% 1.7%
------------------------ -------------- ------------ -------------- ------------
Hotels and Restaurants 3.2% 8.6% 3.7% 9.2%
------------------------ -------------- ------------ -------------- ------------
Costa 4.0% 16.2% 4.6% 16.7%
-------------- ------------ -------------- ------------
Total 3.3% 11.1% 3.9% 11.8%
-------------- ------------ -------------- ------------
Andy Harrison, Chief Executive of Whitbread comments:
"We are continuing to deliver our ambitious organic growth plans
with another good quarter, growing total sales by 11.1% and like
for like sales by 3.3% for the 11 weeks to 13 August.
Premier Inn grew total sales by 11.6% with rooms available
growing by 7.9%, total revpar growing by 3.9% and occupancy
remaining high at 87.0%. We are particularly pleased with our
London performance where we grew total sales by 21.1%, driven by a
20.3% growth in rooms available, a 1.5% increase in total revpar,
as well as an increase in our occupancy by 0.3% pts to 92.2%. In
the regions we delivered good total sales growth of 9.2%, growing
rooms available by 6.2% and total revpar by 3.3% with good
occupancy of 86.2%. This was against strong comparatives which
benefitted from the Commonwealth Games and the Farnborough Airshow
last year. Our Restaurants business outperformed a continuing soft
pub restaurant market, with like for like sales growth of 0.6%.
Costa maintained its rapid growth with worldwide sales growing by
16.2% and UK Retail system sales up 14.8%. In the UK like for like
sales growth was good at 4.0%, against a strong performance last
year. August is often affected by weather and holiday patterns and
trading this August, across all our brands, was softer than
expected against strong comparatives from an excellent month last
year.
We are developing plans to adopt the recently announced National
Living Wage. We shall mitigate this substantial cost increase over
time with a combination of productivity improvements, boosted by
investment in systems and training, efficiency savings and some
selective price increases. We shall announce more details of our
plans with our Interim Results on 20 October 2015.
Our first half performance keeps us on track to deliver full
year expectations, as well as our ambitious growth milestones. This
year we plan to open around 5,500 UK rooms, around 220 net new
Costa stores worldwide and to install 700-800 new Costa Express
machines. Our committed UK hotel pipeline has grown to 14,106
rooms."
Trading highlights for the 24 weeks:
Hotels and Restaurants
-- Premier Inn has continued to win UK market share, growing
total sales(*2) for the 24 weeks by 12.9%, like for like sales by
5.3%, total revpar by 4.9% and total room nights sold by 8.0% to
8.3 million. Total occupancy remained high at 83.5%, in line with
last year, together with an 8.1% growth in the number of rooms
available.
-- In the quarter Premier Inn grew total sales by 11.6% and
total revpar by 3.9%. Like for like sales growth of 4.3% was ahead
of the like for like revpar growth of 3.2%, benefitting from our
accelerated hotel extension programme.
-- In London we grew total sales by 21.1% in the quarter, with a
20.3% increase in rooms available, total revpar growth of 1.5% and
total occupancy up 0.3% pts to 92.2%. Total London market(*3)
revpar grew by 1.9% and the Midscale and Economy(*3) sector grew
total revpar by 3.7%.
-- In the regions we grew total sales by 9.2% in the quarter,
with a 3.3% increase in total revpar, a 6.2% increase in rooms
available with total occupancy similar to last year at 86.2%. Total
regional market revpar grew by 5.3% and the Midscale and
Economy(*3) sector grew total revpar by 6.4%.
-- Restaurants delivered total sales growth of 1.7% and like for
like sales growth of 0.3% for the 24 weeks, ahead of a soft pub
restaurant market outside the M25.
-- 800 UK rooms were opened in the year to date and we also
opened our first international management contract hotel in Sharjah
UAE, with 168 rooms. For the full year, we plan to open around
5,500 UK rooms including c.1,300 extensions.
Costa
-- Costa grew its worldwide total sales by 16.7% and like for
like UK sales by 4.6% for the 24 weeks.
-- Costa grew worldwide system sales by 15.1% to GBP693.7
million (15.1% at constant currency). Within this franchise system
sales grew by 12.2% to GBP265.7 million.
-- UK Retail system sales, year to date, grew by 15.7% to
GBP376.5 million with equity stores growing like for like sales by
4.6%. We opened 61 net new UK stores.
-- Costa Enterprises (including Costa Express UK &
International) delivered system sales of GBP175.0 million, up
15.5%. Costa Express maintained its success with the installation
of a further 379 Costa Express machines*(5) taking the total to
4,671.
-- International system sales grew by 13.6% to GBP144.1 million
(13.6% at constant currency). 11 net new stores were opened in the
period with two in EMEI and nine in Asia.
-- In the year Costa plans to open around 220 net new stores.
This includes the closure of around 60 lower margin UK franchise
stores in petrol stations following their disposal by Esso. We also
plan to install around 700-800 net Costa Express machines in the
year.
Group
-- The strong financial position of the Group remains unchanged.
Notes:
Site detail 26 February Opened Closed Transfers 13 August
2015 2015
Premier Inn UK(*4) 59,138 800 59,938
------------ ------- ------- ---------- ----------
Premier Inn International 1,703 168 1,871
------------ ------- ------- ---------- ----------
Total Premier Inn
(rooms) 60,841 968 61,809
------------ ------- ------- ---------- ----------
Restaurants (sites) 405 2 (2) 405
------------ ------- ------- ---------- ----------
Costa Retail Equity 1,114 55 (21) 1,148
------------ ------- ------- ---------- ----------
Franchise 461 38 (1) 498
------------ ------- ------- ---------- ----------
Costa Enterprises 356 12 (22) 346
------------ ------- ------- ---------- ----------
Total Costa UK Stores
(Retail + Enterprises) 1,931 105 (44) 1,992
------------ ------- ------- ---------- ----------
Costa EMEI 785 34 (32) 787
------------ ------- ------- ---------- ----------
Costa Asia 364 22 (13) 373
------------ ------- ------- ---------- ----------
Total Costa (stores) 3,080 161 (89) 3,152
------------ ------- ------- ---------- ----------
Costa Express Machines*(5) 4,292 379 4,671
------------ ------- ------- ---------- ----------
Total Equity 1,242 59 (25) 9 1,285
------------ ------- ------- ---------- ----------
Total JV 344 18 (11) 351
------------ ------- ------- ---------- ----------
Total Franchise 1,494 84 (53) (9) 1,516
------------ ------- ------- ---------- ----------
(*) (1) Like for like sales which are stated Pre IFRIC 13
adjustment are for Premier Inn - UK and Ireland and for Costa UK
equity stores and Restaurants - UK. Post IFRIC 13 for the 24 weeks
to 13 August 2015 Premier Inn like for like and total sales would
be the same; Restaurants like for like sales would be 0.3% pts
lower and growth in total sales 0.3% pts lower; Costa like for like
sales would be 0.2% pts lower, growth in total sales 0.1% pts
higher and growth in total system sales 0.1% pts higher.
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