Whitbread remain positive after mixed performance

29th April 2009, 10:43am

Whitbread, owners of Costa Coffee, Brewers Fayre and Table Table, has posted a positive trading statement despite the economic downturn and falling occupany rates at its Premier Inn brand.

The company said that overall like-for-like sales in the financial year to 26 February 2009 were up 4.9%.

At Premier Inn like-for-like sales were up 6% and Costa Coffee's sales increased by 2%.

Around 55 new Premier Inn hotels were opened during the financial period and there were over 290 new Costa Coffee stores globally.

Alan Parker, chief executive of Whitbread commented on the results: "Whitbread achieved good sales and profit growth in the year. We have strengthened our market leading brands by adding a record number of Premier Inns and Costa stores, whilst significantly improving our restaurant performance."

Despite the increase in like-for-like sales, the group said that the last quarter of 2008 was particularly difficult as a result of lower occupancy in Premier Inn. 

The company said: "Premier Inn has been impacted by the increasingly harsh economic environment but continues to outperform the market. Against tough comparatives, its performance since the start of the financial year has softened further whilst remaining within the range of market expectations."

Whitbread said it has reduced the company's overall debt by £197.3 million as it continues to invest in the various brands: "We invested in increasing our branded restaurant portfolio, opening 13 new restaurants. This included six new Table Table Restaurants. We also opened six further outlets of Taybarns.

"We continue to invest in the estate, ensuring our hotels and restaurants are maintained to a consistently high standard. In the year we upgraded over 7,000 Premier Inn rooms and refurbished a total of 48 restaurants, 42 of which were Brewers Fayres."

Another 100 Costa stores are planned for the UK in 2009/10, adding another 100 across international markets.

Capital expenditure in 2009/10 is expected to be £170 million.

Related Articles:

• 13 Dec 2011 - Hotel and restaurant group Whitbread achieves total sales growth of 11.4%
• 07 Sep 2009 - Whitbread's total group sales rise by 2.4%
• 02 Sep 2009 - Whitbread achieves top grade for hospitality programme
• 20 Aug 2009 - Whitbread launches environment report
• 16 Jun 2009 - Whitbread sales in line with expectations
• 24 Apr 2009 - Costa launches third training Academy
• 11 Mar 2009 - Whitbread embarks on skills for life training
• 09 Mar 2009 - Coffee tasting tongue insured for £10 million
• 06 Mar 2009 - Coffee chains serve healthy eating commitments
• 09 Oct 2008 - Facts about Costa Coffee and Whitbread

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