Whitbread’s first half revenue rose 2% to £1.6bn (£1.6bn expected). Premier Inn UK & Ireland sales accelerated in the second quarter, with double-digit growth in Germany largely driven by new room openings. Growth was constrained by a 9% fall in UK food and beverage sales, as the restaurant estate was reduced further.
Underlying cash profit (EBITDAR) grew 1% to £0.6bn (£0.6bn expected) as revenue growth and cost efficiencies more than offset inflationary headwinds.
Free cash flow improved 35% to £174mn largely due to a decrease in capital expenditure. Net debt including lease liabilities increased from £4.9bn to £5.3bn.
The interim dividend was flat at 36.4p per share.
Accommodation sales in the UK in the first five weeks of the second half were up 4.5% in the UK and 31.2% in Germany supported by both expansion in the estate as well as underlying growth.
The shares rose 3.2% following the announcement.
Our view
HL view to follow.
Whitbread key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.