Whitbread PLC (LON:WTB) today announced in its trading statement that total sales were up 8.0% in the first quarter.
Despite a tricky market, sales growth at Whitbread PlC, owner of Costa Coffee and Premier Inn maintained a steady rise in its first quarter as strong performances from its coffee chain sailed past expectations despite the group being hit by a ‘soft hotel market’ in the UK alongside tougher trading environments in China.
In the 13 weeks to June 2016, Premier Inn total sales grew by 8.0% as the company’s like for like sales stormed ahead of estimates of 1.6% in growth as the total reached 2.1%.
Whitbread Chief Executive, Alison Brittain said,
“Costa has started the year well and Premier Inn continues to win share, albeit in a weaker than expected hotel market”
The FTSE 100 Company has opened 35 new stores in the UK as the extension programme has seen its Costa Coffee share grow by 11.5% reaching £414m. Like-for-like sales were at 2.6% beating estimates of 1.9% as the company remains on target to open 230-250 Costa stores worldwide alongside an extra 4,000 – 4,500 new hotel rooms in 2016-17.
Sales in London were up 5.6% although the group have been hit by a rough patch in the market as London based Premier Inn hotels like-for-like revpar (revenue per room) dropped 0.5% as total revpar fell by 2.1% as demand weakened.
Internationally, system sales increased by 11.5% to £88.3m as the company said it’s “excited about the long term growth opportunity although recently we have seen a tougher trading environment, due to a weaker Chinese economy”
“Although it is early in our new financial year and despite current market conditions, with the benefit of our cost efficiency programme we remain confident of making good progress for the full year.” said Alision Brittain
At 11:41am BST Whitbread plc traded at: 4,142.12 +101.12 (2.50%)
21/06/2016