REG - Whitbread PLC - 3rd Quarter Results

WhitbreadAnnouncement

16/01/2025 07:00

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RNS Number : 5051T  Whitbread PLC  16 January 2025

Positive strategic progress, stable UK performance and continued momentum in
Germany

 

Throughout this release percentage growth comparisons are comparing Q3 FY25
performance for the 13 weeks to 28 November 2024 to the same period in FY24,
unless stated otherwise.

 

 

Comment from Dominic Paul, Whitbread Chief Executive:

 

"Our Five-Year Plan is set to deliver incremental profit of at least £300m by
FY30 and release more than £2bn for shareholders through a combination of
dividends and share buy-backs. We are making good progress against our
strategic priorities including our Accelerating Growth Plan and cost
efficiency programme, and we remain confident in our ability to deliver a step
change in profits, margins and returns.

 

"The structural shift in UK supply has meant that Premier Inn is continuing to
sustain the significant gains made since the pandemic. Whilst forward
visibility remains limited, the favourable supply backdrop, together with our
brand strength and commercial initiatives, means we are confident that we can
continue to outperform the market.

 

"In Germany, we continued to perform strongly in what is an important trading
period. As a result, we remain on track to reach profitability on a run-rate
basis this year which is a key milestone and gives us real confidence as we
continue to build momentum towards becoming the country's number one hotel
brand."

 

Overview

 •            Total UK accommodation sales were in line with last year and we delivered
              another strong trading performance in Germany. With the expected reduction in
              UK food and beverage ('F&B') sales as a result of our Accelerating Growth
              Plan, total Group sales were down 2% to £763m
 •            Premier Inn UK:

              o  Trading improved during the quarter resulting in total accommodation sales
              broadly in line with last year and up 51% versus FY20; total RevPAR was down
              3% and up 35% versus FY20

              o  Premier Inn continued to outperform the midscale and economy ('M&E')
              sector with total accommodation sales growth 0.8pp ahead and a RevPAR premium
              of £6.24(1)

              o  F&B sales performed in line with our expectations reflecting the
              impact of our Accelerating Growth Plan
 •            Premier Inn Germany:

              o  Total accommodation sales were up 23% in local currency (19% in GBP), led
              by the increasing maturity of our estate and the benefit of our commercial
              initiatives

              o  Total estate RevPAR increased to €71 and RevPAR of our more established
              hotels was €79, performing well ahead of the wider M&E market(2)
 •            Current trading: In the six weeks to 9 January 2025, total UK accommodation
              sales were up 2% and total Germany accommodation sales were up 37%
 •            £100m share buy-back was completed on 13 November 2024

 

Q3 FY25 Summary

 

                              Q3                        Q3 YTD
                              UK     Germany(3)  Total  UK    Germany(3)  Total
 Sales growth:
    Accommodation             0%     19%         1%     0%    21%         2%
    Food & beverage           (14)%  22%         (12)%  (9)%  17%         (8)%
    Total                     (4)%   19%         (2)%   (2)%  20%         (1)%
 Like-for-like sales growth:
    Accommodation             (3)%   19%         (1)%   (2)%  18%         (1)%
    Food & beverage           (1)%   21%         0%     (2)%  14%         (2)%
    Total                     (3)%   20%         (1)%   (2)%  17%         (1)%

1: STR data, standard basis, 30 August 2024 to 28 November 2024, UK M&E
market excludes Premier Inn

2: STR data, standard basis, 30 August 2024 to 28 November 2024, Germany
M&E market excludes Premier Inn

3: Germany sales growth in GBP

 

Current trading (six weeks to 9 January 2025) and FY25 guidance

 •            UK total accommodation sales were up 2% with RevPAR in line with last year
 •            UK F&B sales continue to perform in line with our expectations and
              previous guidance
 •            Germany total accommodation sales were up 37% and RevPAR up 28% in local
              currency
 •            There is no change to our previous FY25 guidance

 
FY26 guidance and outlook

 •            We are making good progress against our strategic priorities and remain on
              track with our Five-Year Plan. Whilst forward visibility remains limited, we
              expect to realise further benefits from our commercial initiatives that will
              enable us to continue to outperform the market
 •            There is no change to our Accelerating Growth Plan guidance and we expect to
              fully reverse the FY25 PBT negative impact of £20m to £25m
 •            Including the impact of the UK Budget, we expect gross UK cost inflation to be
              between 5% and 6% on our £1.7bn cost base. However, with efficiencies of
              £50m, net UK cost inflation is expected to be between 2% and 3%
 •            We're making excellent progress in Germany and with continued estate and brand
              maturity, we are on track to deliver profitability in FY26
 •            Expected reduction of between £15m and £20m in net finance income versus
              FY25 reflecting lower cash balances and the impact of refinancing the Group's
              2015 bond

 

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

 Media - Brunswick                               whitbread@brunswickgroup.com
 Tim Danaher                                     +44 (0) 20 7404 5959

 

A live Q&A teleconference for investors and analysts will be held at
9:15am GMT on 16 January 2025. 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: 005367

( )

 

Appendix

 

1)   Premier Inn UK key performance indicators

 

                                                 Q1       Q2       Q3       Q3 %(1)   YTD
 London
 Occupancy (full inventory)                      78.6%    84.3%    83.1%    (3.2)pp   82.0%
 Average room rate (£)                           109.12   116.65   112.47   (2.9)%    112.84
 Revenue per available room (£)                  85.77    98.32    93.49    (6.4%)    92.55
 Total accommodation sales (£m)                  120.0    138.5    133.9    0.2%      392.4

 Regions
 Occupancy (full inventory)                      82.6%    84.3%    83.9%    (0.8)pp   83.6%
 Average room rate (£)                           71.00    84.77    74.43    (0.9)%    76.78
 Revenue per available room (£)                  58.67    71.45    62.43    (1.8)%    64.19
 Total accommodation sales (£m)                  374.1    456.2    398.7    (0.6)%    1,229.0

 Total
 Occupancy (full inventory)                      81.9%    84.3%    83.7%    (1.2)pp   83.3%
 Average room rate (£)                           77.59    90.53    81.35    (1.2)%    83.22
 Revenue per available room (£)                  63.54    76.31    68.12    (2.5)%    69.33
 Total accommodation sales (£m)                  494.1    594.7    532.7    (0.4)%    1,621.4

 Total accommodation sales vs M&E market(2)      +0.6pp   +0.3pp   +0.8pp   (4.6)pp   +0.6pp
 RevPAR premium vs M&E market(2)                 +£5.44   +£6.32   +£6.24   £(0.25)   +£5.99

 F&B
 Total food and beverage sales (£m)              191.0    175.1    162.4    (13.6)%   528.5

 Total UK sales (£m)                             685.2    769.8    695.1    (3.8)%    2,150.0

 

 

2)   Premier Inn Germany key performance indicators

 

                                   Q1     Q2     Q3     Q3 %(1)  YTD
 Occupancy (full inventory)        64.6%  72.0%  73.5%  7.7pp    70.1%
 Average room rate (€)             87.88  90.05  96.89  7.0%     91.81
 Revenue per available room (€)    56.79  64.87  71.25  19.6%    64.34
 Total accommodation sales (€m)    54.3   62.0   69.3   23.1%    185.7
 Total food and beverage (€m)      8.8    9.8    11.3   26.6%    30.0
 Total sales (€m)                  63.1   71.8   80.7   23.6%    215.6

 

Notes:

1: Growth versus Q3 FY24

2: STR data, standard basis, 1 March 2024 to 28 November 2024, M&E market
excludes Premier Inn

 

 

 

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