Whitbread’s first half revenue fell by 2% to £1.5bn, with the decline led by UK Food and Beverage sales. The key UK accommodation division was flat, with average room rates up and occupancy down.
The drop in revenue and increased finance charges saw underlying pre-tax profit fall 7% to £0.3bn.
Free cash flow fell from £0.3bn to £0.2bn, largely reflecting an increase in capital expenditure.
Underlying net debt including lease liabilities rose from £2.9bn to £3.3bn, due to the addition of new hotel leases and further share buybacks.
Trading momentum into the second half is positive. However full-year profit guidance in the fledgling German operation has been lowered and UK cost inflation is trending higher than previously expected.
The interim dividend of 36.4p was unchanged.
The shares were down 8% in early trading.
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.
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