Reporting its interim results this morning, the group announced that its Accelerating Growth Plan (AGP)—aimed at optimizing its food and beverage (F&B) offerings to provide a more personalized guest experience—is progressing well, with planning applications for over a third of the planned 3,500 extension rooms already submitted.
Total F&B sales decreased by 7% during the 26 weeks ending on August 29, 2024, aligning with expectations and reflecting adjustments made to its branded restaurants as part of this plan, which was introduced in April.
This decline was partially mitigated by stronger performance in integrated restaurants due to consistently high hotel occupancy rates.
In the most recent six weeks ending October 10, 2024, there was a positive trend following a slow start in September, though total UK accommodation sales still fell by 1% compared to the previous year.
F&B sales dropped by 14% during this period, which the group attributes to the effects of its Accelerating Growth Plan.
For the first half of the year, group statutory revenue was £1.57 billion, consistent with last year, while adjusted profit before tax stood at £340 million, down from £391 million in H1 2024.
The adjustments before tax for the period resulted in a £31 million charge, compared to a £4 million credit in H1 FY24, leading to a statutory profit before tax of £309 million, down from £395 million in H1 FY24.
The operator of Premier Inn indicated that its H1 FY2025 results reflect a somewhat softer UK demand environment, investment in its AGP, and lower interest income, although this was somewhat balanced by positive momentum in Germany.
The group anticipates that by FY30, it will boost its adjusted profit before tax by at least £300 million compared to FY25 and generate over £2 billion for dividends, share buy-backs, and potential high-return investments if suitable opportunities arise.
The business plans to embark on a share buy-back program of up to £100 million to reduce capital by returning surplus funds to shareholders, which is expected to enhance earnings per share.
Dominic Paul, chief executive of Whitbread, commented on the results, stating: “We are making excellent progress with our plans and over the next five years are set to deliver a step change in our performance that will reward shareholders significantly.”
He added, “We have today announced the details of our five-year plan that outlines the scale of our ambitions up to FY30. In the UK, we have a clear pathway to extend our market-leading position and take advantage of the favorable supply environment.”
Paul emphasized the company’s commitment to building on its considerable outperformance since the pandemic, noting that while the market has softened slightly compared to last year, they remain on track to achieve substantial growth in UK returns over the medium term while continuing to meet customer needs, as evidenced by high guest satisfaction scores.
