Whitbread’s full-year revenue came in flat at £2.9bn. Growth in UK and German accommodation sales offset the fall in food and beverage revenues that accompanied branded restaurant disposals.
Underlying cash profit (EBITDAR) grew by 4% to £1.1bn, despite higher-than-expected cost inflation in the core UK business.
Free cash flow decreased from £0.4bn to £0.1bn, reflecting increased capital expenditure. Net debt, including leases, grew by £0.5bn to £5.2bn.
The final dividend was held flat at 60.6p per share.
Accommodation sales are up so far this year, but net inflation guidance in the UK has moved to the top of the previous 3-4% range. The ongoing restaurant disposal plan is expected to drive a £40mn hit to the bottom line.
The shares were down 3.1% in early trading.
Our view
HL view to follow.
Whitbread key facts
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