Whitbread PLC: announces Q3/2015 Trading Update

Dunstable / UK. (wbp) Costa Coffee, Europe’s largest coffee shop chain and part of British Whitbread PLC, grew its worldwide total sales by by 15.3 percent and like for like UK sales by 3.7 percent – Whitbread PLC reported in its latest Trading Update to 26 November 2015 for the year ending 03 March 2016.

Costa grew worldwide system sales by 14.1 percent to 1’165 million GBP (14.3 percent at constant currency). Within this, franchise system sales grew by 11.3 percent to 443 million GBP.

UK Retail system sales, year to date, grew by 14.9 percent to 635 million GBP with equity stores growing like for like sales by 3.7 percent. We opened 69 net new UK stores, including the opening of our 2’000th UK store.

Costa Enterprises (including Costa Express UK and International) delivered system sales of 294 million GBP, up 14.0 percent. Costa Express maintained its success with the installation of a further 687 Costa Express machines taking the total to 4’979.

International system sales grew by 11.9 percent to 236 million GBP (13.0 percent at constant currency). 37 net new stores were opened in the period with 25 in EMEI and twelve in Asia.

In the year Costa plans to open around 200 net new stores worldwide and install over 800 net Costa Express machines.

Group sales update – in percent versus prior year

    Sales for the 13 weeks to 26 November 2015 Sales for the 39 weeks to 26 November 2015
    Like for like sales Total sales Like for like sales Total sales
Premier Inn 4.7 percent 10.8 percent 4.9 percent 11.9 percent
Restaurants 1.7 percent 3.0 percent 0.6 percent 2.0 percent
Hotels and Restaurants 3.8 percent 8.5 percent 3.5 percent 8.8 percent
Costa 2.5 percent 13.8 percent 3.7 percent 15.3 percent
Total 3.5 percent 10.4 percent 3.6 percent 11.1 percent


Chief Executive’s Commentary

Alison Brittain, Chief Executive of Whitbread, said: «I am delighted to have joined Whitbread as CEO. This is a great business with a strong leadership team and 48’500 team members who are passionate about delivering outstanding customer service.

In Costa and Premier Inn we have built the nation’s most loved coffee shop and hotel brands and we have laid out clear and ambitious growth milestones. I am looking forward to building on the foundations of the business by investing in our people, our network and our infrastructure to enhance our customer offer, further strengthen our brands and deliver profitable growth.

Whitbread has had another good quarter and, for the year to date, we have delivered total sales growth of 11.1 percent and like for like sales growth of 3.6 percent. Our brands continue to win market share and we are on track to deliver full year results in line with market expectations».

Group Site Details

   2015-02-26 Opened Closed Transfers 2015-11-26
Premier Inn UK 59'138 1'818       60'956
Premier Inn International 1'703 168       1'871
Total Premier Inn (rooms) 60'841 1'986       62'827
Restaurants (sites) 405 3 (2)    406
Costa Retail Equity 1'114 91 (30)    1'175
Costa Retail Franchise 461 60 (1)    520
Costa Enterprises 356 21 (72)    305
Total Costa UK Stores (Retail + Enterprises) 1'931 172 (103)    2'000
Costa EMEI 785 71 (46)    810
Costa Asia 364 36 (24)    376
Total Costa (stores) 3'080 279 (173)    3'186
Costa Express Machines 4'292 687       4'979
Total Equity 1'242 101 (36) 9 1'316
Total JV 344 32 (20)    356
Total Franchise 1'494 146 (117) (9) 1'514


Trading Highlights

During the quarter total sales grew by 10.4 percent and like for like sales grew by 3.5 percent.

Premier Inn’s total sales grew by 10.8 percent, with a combination of 4.7 percent like for like sales growth and a 7.4 percent increase in rooms available with good total sales growth in both London, up 14.8 percent, and in the regions, up 9.7 percent. Total revpar was up 3.6 percent with occupancy remaining high at 84.5 percent. Restaurants like for like sales growth was 1.7 percent. Costa delivered total sales growth of 13.8 percent and like for like sales growth of 2.5 percent in a quarter that included a soft November.

The Group is on track to deliver its growth milestones. This year it plans to open around 5’500 new Premier Inn rooms and around 200 net new Costa stores worldwide. The committed UK hotel pipeline has grown to 14’588 rooms (Image: Whitbread PLC).