REG - Whitbread PLC - Q1 Trading Update

WhitbreadAnnouncement

18/06/2024 07:00

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RNS Number : 7754S  Whitbread PLC  18 June 2024

 

Strengthening trading performance in the UK and continued progress in Germany

 

Throughout this release percentage growth comparisons are comparing Q1 FY25
performance for the 13 weeks to 30 May 2024 to the same period in FY24, unless
stated otherwise.

 

Summary

·      Group total sales grew 1% to £739m, driven by improved UK
trading and continued progress in Germany

·      Premier Inn UK:

o As expected, trading performance strengthened during the quarter and Q1
accommodation sales were in line with last year and up 55% versus FY20; total
RevPAR was 2% behind and 38% ahead of FY20

o This meant that our total accommodation sales growth was 0.6pp ahead (Q1
FY24: 0.3pp) versus the midscale and economy ('M&E') sector(1) and our
RevPAR premium was £5.62 (Q1 FY24: £6.12; Q1 FY20: £2.32)

o Food and beverage ('F&B') sales were 1% behind with strong breakfast
sales driven by high occupancy in our hotels offset by softer trading in a
number of our branded restaurants

·      Premier Inn Germany:

o Total accommodation sales were up 15%(2), led by the increasing maturity of
our estate and continued room growth

o Total estate RevPAR increased to €57 and our more established hotels
RevPAR was €61, outperforming the wider M&E market(3)

·      £150m share buy-back: on track with 3.2m shares purchased so far
for a total consideration of £96m

·      Confident in full year outlook, underpinned by our strong
commercial programme and good progress on cost efficiencies

 

Comment from Dominic Paul, Chief Executive:

 

"Our UK trading results strengthened during the quarter and we continued to
grow accommodation sales ahead of the market. Underpinned by the favourable
supply backdrop, total accommodation sales and RevPAR remained significantly
ahead of pre-pandemic levels. In Germany, we delivered another strong
performance, led by the increasing maturity of our estate and continued room
growth. Our cohort of more established hotels is continuing to outperform the
M&E market and we remain on course to achieve the important milestone of
reaching break-even on a run-rate basis during the second half of 2024.

 

"Whilst the normal booking pattern means our forward visibility remains
limited, our forward booked position is positive and we remain confident in
the full year outlook. This reflects a more encouraging trading performance in
the UK, our strong commercial programme and increased cost efficiencies, as
well as good progress in Germany.

 

"Our Accelerating Growth Plan to optimise F&B at a number of sites and add
3,500 rooms to our UK pipeline is on track and will increase our momentum to
deliver long-term profitable growth. With significant potential in both the UK
and Germany, supported by the structural reduction in supply and our
asset-backed balance sheet, our strategic plans are set to deliver a step
change in our performance."

 

Q1 FY25 summary (versus Q1 FY24)

 

                              UK    Germany(2)  Total
 Sales growth:
    Accommodation             0%    +15%        +1%
    Food & beverage           (1)%  +13%        (1)%
    Total                     0%    +15%        +1%
 Like-for-like sales growth:
    Accommodation             (2)%  +6%         (1)%
    Food & beverage           (1)%  +2%         (1)%
    Total                     (1)%  +5%         (1)%

Notes:

1: STR data, standard basis, 1 March 2024 to 30 May 2024, UK M&E market
excludes Premier Inn

2: Germany sales growth in GBP

3: STR data, standard basis, 1 March 2024 to 30 May 2024, Germany M&E
market excludes Premier Inn

 

Q1 performance

Having been 1% behind last year in the first seven weeks, our trading
performance strengthened during the remainder of the quarter and accommodation
sales recovered to be in line with last year and up 55% versus FY20. While
midweek business demand and peak leisure demand remained robust, weekend
demand at short-lead was slightly softer, particularly in London, reflecting a
return to more normalised levels after what was a very strong performance last
year. However, with the strength of our brand and the benefit of our
commercial programme, we continued to outperform the market with total
accommodation sales growth 0.6pp ahead (Q1 FY24: 0.3pp ahead) delivering a
RevPAR premium of £5.62 (Q1 FY24: £6.12; Q1 FY20: £2.32).

 

UK F&B sales were 1% behind last year, with strong breakfast sales driven
by high occupancy in our hotels offset by softer trading in a number of our
branded restaurants.

 

In Germany, total accommodation sales were up 15% versus last year led by the
increasing maturity of our estate and continued room growth. Our total estate
RevPAR increased to €57 (Q1 FY24: €55) and our cohort of more established
hotels continued to perform ahead of the wider market, achieving a RevPAR of
€61 (Q1 FY24: €61).

 

Outlook

We remain confident in the full year outlook. In the UK, recent trading has
been more encouraging as we move into the peak periods of the year and our
forward booked position remains positive. We are continuing to execute our
commercial programme and net inflation is now expected to be at the lower end
of guidance as a result of increased cost efficiencies.

 

In Germany, we have launched our first online-focused brand campaign and are
trading well. We are on course to break-even on a run-rate basis during
calendar year 2024 which is a key milestone as we progress towards our
longer-term target of 10-14% return on capital.

 

Interim results

The Group's interim results will be announced on 16 October 2024.

 

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
8:00am BST on 18 June 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 - 8:00am BST

United Kingdom (Local): 020 3936 2999

Participant Access Code: 630351

 

 

Appendix

 

1)   Premier Inn UK key performance indicators

                                                                          FY24                         FY25
                                                        Q1       Q2       Q3       Q4       Full Year  Q1       Q1(2)

                                                                                                                %
 London
 Occupancy (full inventory)                             81.2%    86.7%    86.3%    78.0%    83.0%      78.6%    (2.6)pp
 Average room rate (£)                                  111.71   116.39   115.78   94.10    109.78     109.12   (2.3)%
 Revenue per available room (£)                         90.76    100.91   99.90    73.43    91.17      85.77    (5.5)%
 Total accommodation sales (£m)                         120.8    134.6    133.7    99.9     489.0      120.0    (0.6)%

 Regions
 Occupancy (full inventory)                             83.1%    85.9%    84.7%    74.5%    82.0%      82.6%    (0.5)pp
 Average room rate (£)                                  71.06    84.38    75.07    61.10    73.30      71.00    (0.1)%
 Revenue per available room (£)                         59.06    72.49    63.55    45.50    60.12      58.66    (0.7)%
 Total accommodation sales (£m)                         372.0    456.7    401.3    288.7    1,518.7    374.1    0.6%

 Total
 Occupancy (full inventory)                             82.8%    86.0%    84.9%    75.1%    82.2%      81.9%    (0.9)pp
 Average room rate (£)                                  78.02    90.01    82.30    67.15    79.76      77.59    (0.6)%
 Revenue per available room (£)                         64.59    77.45    69.90    50.43    65.56      63.54    (1.6)%
 Total accommodation sales (£m)                         492.8    591.3    534.9    388.7    2,007.7    494.1    0.3%

 Total accommodation sales growth vs M&E market(1)      +0.3pp   +3.9pp   +5.4pp   +1.5pp   +3.1pp     +0.6pp   +0.3pp
 RevPAR premium vs M&E market(1)                        +£6.12   +£7.27   +£6.49   +£4.08   +£5.95     +£5.62   £(0.50)

 F&B
 Total food and beverage sales (£m)                     193.7    201.4    187.9    179.2    762.0      191.0    (1.4)%

 Total UK sales (£m)                                    686.5    792.6    722.8    567.9    2,769.7    685.2    (0.2)%

 

 

2)   Premier Inn Germany key performance indicators

                                                     FY24                     FY25
                                       Q1     Q2     Q3     Q4     Full Year  Q1     Q1(2)

                                                                                     %
 Occupancy (full inventory)            64.5%  64.0%  65.8%  53.4%  61.8%      64.6%  0.2pp
 Average room rate (€)                 84.81  80.12  90.53  75.45  83.07      87.88  3.6%
 Revenue per available room (€)        54.67  51.29  59.59  40.28  51.36      56.79  3.9%
 Total accommodation sales (€m)        46.2   47.3   56.3   38.2   188.0      54.3   17.6%
 Total food and beverage sales (€m)    7.7    8.3    9.0    6.9    31.8       8.8    15.3%
 Total sales (€m)                      53.8   55.6   65.3   45.1   219.8      63.1   17.3%

 

Notes:

1: STR data, standard basis, 1 March 2024 to 30 May 2024, M&E market
excludes Premier Inn

2: Sales growth versus FY24

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