DUNSTABLE, U.K.—Whitbread PLC released results for the financial year to 1 March 2012.
Read full earnings release.
· Total revenue up 11.2% to £1,778.0 million (2010/11: £1,599.6 million)
· Underlying profit1 before tax up 11.3% to £320.1 million (2010/11: £287.5 million)
· Whitbread Hotels and Restaurants underlying profits up 4.3% to £295.6 million, return on capital2 up to 12.4% (2010/11: 12.3%)
· Costa underlying profits up 38.0% to £69.7 million, return on capital2 up to 32.4% (2010/11: 28.3%)
· Group like for like sales3 up 2.6% in the year
· Underlying diluted EPS up 15.2% to 134.1p (2010/11: 116.4p)
· Strong cashflow from operations of £478.3 million funded cash capital investment of £307.9 million in 2011/12 and dividend growth
· Full year dividend up 15.2% to 51.25p (2010/11: 44.50p)
· Strong balance sheet, year end net debt of £504.3 million
· Profit after tax and exceptional items for the year up 19.8% to £266.0 million (2010/11: £222.1 million)
· Total basic EPS 151.5p up 19.2% (2010/11: 127.2p)
Strong brands getting stronger
· Premier Inn grew total sales by 8.3%, with revpar outperformance against its competitive4 set
· Restaurants delivered an improved second half sales performance
· Costa had another outstanding year, growing total sales by 27.5% and like for like sales by 5.5%
Five year growth milestones on track
· Record number of 4,055 new build rooms opened in UK. Total UK & Ireland rooms now 47,429. Committed pipeline of 10,500 rooms
· Costa net store growth of 175 in the UK and 157 overseas. Total stores now 2,203
· Costa Express ahead of expectations with 1,192 machines
· 2,500 new UK jobs created, with a further 10,000 expected over the next three years
Anthony Habgood, Chairman, said:
"Whitbread has delivered another good set of results with both the full year earnings and dividends growing by 15%. Our focus on building strong brands and meeting the needs of our customers has enabled us to perform well in tough market conditions giving us the confidence to continue to expand in line with our ambitious growth plans."
Andy Harrison, Chief Executive, said:
"Whitbread performed well in 2011/12. Sales grew by 11.2%, driven by our strong brands, with an increase in underlying pre-tax profits of 11.3%. This profit growth, combined with our good return on capital, drove a strong cash inflow from operations of £478.3 million. This funded reinvestment of £307.9 million in maintaining and growing our estate, together with a 15.2% growth in the full year dividend, whilst retaining our strong balance sheet.
We remain on track to achieve our five year growth milestones. In Premier Inn UK, we have nearly 58,000 rooms in our existing estate and committed pipeline, taking us towards our 2016 milestone of 65,000 rooms. Last year we grew Costa's worldwide network by 18%, well on the way towards our five year goal of doubling the size of Costa. This growth, combined with our strong focus on returns should create substantial shareholder value.
In the new financial year both Premier Inn and Restaurants have shown positive like for like sales growth and Costa has continued its good momentum, both in the UK and internationally. Trading in 2011/12 was variable month by month and we expect this to continue with short term comparatives affected by the phasing of bank holidays and the Olympics."
For further information contact:
Christopher Rogers, Group Finance Director + 44 (0) 20 7806 5491
Anna Glover, Director of Communications +44 (0) 1582 844 244
Joanne Russell, Director of Investor Relations +44 (0) 1582 888 633
David Allchurch/Rebecca Scott + 44 (0) 20 7353 4200