REG - Whitbread PLC - 3rd Quarter Results

WhitbreadAnnouncement

11/01/2024 07:00

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RNS Number : 3136Z  Whitbread PLC  11 January 2024

 

Continued strong performance in the UK

and encouraging performance in Germany

 

Throughout this release percentage growth comparisons are comparing Q3 FY24
performance for the 13 weeks to 30 November 2023 to the same period in FY23,
unless stated otherwise.

 

Q3 FY24 highlights

·      Premier Inn UK:

o  Total accommodation sales up 11% with strong demand in both London and the
Regions

o  Total RevPAR up 9% and up 39% versus FY20 with high occupancy and strong
pricing

o  Continued outperformance versus the midscale and economy ('M&E')
sector with an increased RevPAR premium of £6.06 (Q3 FY23: £4.48)(1)

o  Food and beverage ('F&B') continued to perform well with sales up 6%

·      Premier Inn Germany:

o  Total accommodation sales up 47%(2), led by the continued expansion of our
estate

o  Total estate RevPAR was €60 and RevPAR of our more established hotels
was €66, in line with the wider M&E market

·      £300m share buy-back: on-track with 6.8m shares purchased so far
for a total consideration of £226m

 

Q3 FY24 summary

 

                              Q3                       Q3 YTD
                              UK    Germany(2)  Total  UK    Germany(2)  Total
 Sales growth:
    Accommodation             +11%  +47%        +13%   +14%  +67%        +17%
    Food & beverage           +6%   +51%        +7%    +9%   +65%        +10%
    Total                     +9%   +47%        +11%   +12%  +67%        +15%
 Like-for-like sales growth:
    Accommodation             +9%   +14%        +9%    +12%  +25%        +12%
    Food & beverage           +6%   +18%        +6%    +8%   +25%        +9%
    Total                     +8%   +14%        +8%    +11%  +25%        +12%

 

Current trading(3) and FY24 guidance

·      Strong trading has continued into Q4 with UK accommodation sales
12% ahead of FY23 with RevPAR up 10% versus FY23 and 39% ahead of FY20

·      UK F&B sales were up 7% versus FY23 following a robust
trading performance over the festive period

·      In Germany, total accommodation sales were 61% ahead of FY23(2)
and we remain comfortable with our FY24 guidance of a pre-tax loss between
£30m and £40m

·      No change to our previous FY24 guidance given at our interim
results in October

 

Outlook and FY25 guidance

·      We expect net UK cost inflation between 3% and 4% on our £1.7bn
- £1.8bn cost base, including operational efficiencies of between £40m and
£50m

·      With a positive forward booked position in the UK, a favourable
supply environment, a clear commercial plan and cost efficiencies, we remain
confident in the FY25 outlook

·      In Germany, we remain on-track to break-even on a run-rate basis
during calendar year 2024

 

Notes:

1: STR data, standard basis, 1 September 2023 to 30 November 2023, M&E
market excludes Premier Inn

2: Germany sales growth in GBP

3: Five week period to 4 January 2024

 

Comment from Dominic Paul, Chief Executive:

 

"Our teams have delivered another strong set of results. In the UK, we
continued to see robust demand for our hotels driving high levels of occupancy
and strong pricing. Our focus on delivering a high quality proposition at a
great price meant that Premier Inn UK has continued to outperform the M&E
market. In Germany, we performed well in what is an important trading period
with a large number of leisure and business events; we remain on course to
break-even on a run-rate basis during calendar year 2024.

 

"We continue to execute against our strategic priorities at pace and given the
structural shift in UK hotel supply, positive current trading, a clear
commercial plan and our ongoing focus on driving cost efficiencies, we remain
confident in the outlook."

 

 

For more information please contact:

Investor Relations -  Whitbread
 
 
     investorrelations@whitbread.com
(mailto:investorrelations@whitbread.com)

Peter Reynolds, Director of Investor Relations
 
                     peter.reynolds@whitbread.com
(mailto:peter.reynolds@whitbread.com)

Sophie Nottage, Investor Relations
Manager
       sophie.nottage@whitbread.com
(mailto:sophie.nottage@whitbread.com)

Kirsten O'Reilly, Investor Relations
Manager
          kirsten.oreilly@whitbread.com
(mailto:kirsten.oreilly@whitbread.com)

 

 

Media - Teneo
 
                     whitbread@teneo.com

Jessica Reid                                                                                                               +44 (0) 20 7353 4200

 

 

A live Q&A teleconference for investors and analysts will be held at
9:15am GMT on 11 January 2024. Details to join are noted below. An on-demand
version of this will be made available on the website
(www.whitbread.com/investors/results-reports-and-presentations
(http://www.whitbread.com/investors/results-reports-and-presentations) )
shortly after.

 

Q&A teleconference participant dial-in numbers:

Start time - 9:15am GMT

United Kingdom (Local): 020 3936 2999

Participant Access Code: 092577

 

 

 

Appendix

 

1)   Premier Inn UK key performance indicators

 

                                      Q1       Q2       Q3       YTD
 London
 Occupancy (full inventory)           81.2%    86.7%    86.3%    84.7%
 Average room rate (£)                111.71   116.39   115.78   114.69
 Revenue per available room (£)       90.76    100.91   99.90    97.20
 Total accommodation sales (£m)       120.8    134.6    133.7    389.1

 Regions
 Occupancy (full inventory)           83.1%    85.9%    84.7%    84.6%
 Average room rate (£)                71.06    84.38    75.07    76.91
 Revenue per available room (£)       59.06    72.49    63.55    65.03
 Total accommodation sales (£m)       372.0    456.7    401.3    1,229.9

 Total
 Occupancy (full inventory)           82.8%    86.0%    84.9%    84.6%
 Average room rate (£)                78.02    90.01    82.30    83.52
 Revenue per available room (£)       64.59    77.45    69.90    70.65
 Total accommodation sales (£m)       492.8    591.3    534.9    1,619.0

 RevPAR premium vs M&E market(1)      +£6.01   +£7.01   +£6.06   +£6.36

 F&B
 Total food and beverage sales (£m)   193.7    201.4    187.9    582.9

 Total UK sales growth (£m)           686.5    792.6    722.8    2,201.9

 

 

2)   Premier Inn Germany key performance indicators

 

                                   Q1     Q2     Q3     YTD
 Occupancy (full inventory)        64.5%  64.0%  65.8%  64.8%
 Average room rate (€)             84.81  80.12  90.53  85.26
 Revenue per available room (€)    54.67  51.29  59.59  55.23
 Total accommodation sales (€m)    46.2   47.3   56.3   149.8
 Total food and beverage (€m)      7.7    8.3    9.0    24.9
 Total sales (€m)                  53.8   55.6   65.3   174.7

 

 

Notes:

1: STR data, standard basis, 3 March 2023 to 30 November 2023, M&E market
excludes Premier Inn

 

 

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