Costa Coffee, Premier Inn sales boost Whitbread results

Growth at the group continues despite tough market conditions.

Thomas Buckley
Tuesday 21 June 2016 08:49
Comments
Costa Coffee owner Whitbread has maintained sales growth and outperformed analysts' predictions
Costa Coffee owner Whitbread has maintained sales growth and outperformed analysts' predictions

Whitbread maintained its sales growth in the first quarter as its Costa Coffee shops and Premier Inns budget hotels exceeded analyst estimates.

Sales rose 1.8 per cent on a like-for-like basis in the period to June 2, the Dunstable, England-based company said in a statement on Tuesday. Sales rose 1.7 per cent in the fourth quarter, hurt by a drop in hotel bookings due to terrorist attacks in Paris and Brussels.

“Although it is early in our new financial year and despite current market conditions, with the benefit of our cost-efficiency programme we remain confident of making good progress for the full year,” chief executive officer Alison Brittain said in the statement.

Whitbread may be one of the stocks in the leisure and hospitality industry hurt most if the UK votes to leave the European Union this week because it s sensitive to spending by British companies, according to Barclays analysts.

Like-for-like sales grew by 2.1 per cent at Premier Inn, compared with the median analyst estimate of 1.6 per cent growth. Costa Coffee’s UK like-for-like sales rose 2.6 per cent, compared with an estimate of 1.9 per cent growth.

© 2016 Bloomberg L.P

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in