Costa Coffee, Premier Inn sales boost Whitbread results

Growth at the group continues despite tough market conditions.

Costa Coffee owner Whitbread has maintained sales growth and outperformed analysts' predictions (Reuters)

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.

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