Whitbread Q1 trading beats expectations
By Abigail Townsend
Date: Wednesday 15 Jun 2022
(Sharecast News) - Trading at Whitbread beat expectations in the first quarter, the pubs and hotel operator said on Wednesday, as demand continued to rebound following the worst of the pandemic.
The owner of Premier Inn, Brewers Fayre and Beefeater, among others, saw UK accommodation sales surge 221.6% on a like-for-like basis year-on-year, or by 21.3% when compared to the same period in 2019.
UK food and beverage sales were 566.5% ahead year-on-year, and down 7.6% on the same period in the 2020 full year.
Whitbread's smaller German business also rebounded more strongly than expected, with Premier Inn occupancy levels reaching 64.7% in the last four weeks of the quarter.
Total group sales were ahead 286% on a like-for-like basis, or 10.8% when compared to pre-pandemic trading.
Alison Brittain, chief executive, said: "The strength of Premier Inn's recovery in the UK continues to be ahead of expectations, with a particularly strong first quarter performance that is well-ahead of pre-pandemic levels.
"This outperformance is driven by a number of factors, including our commercial and operational focus as well as the strength of our brand and operating model."
The company, which has also benefited from the decline of the independent hotel sector, said it was around 40% booked for the second quarter and remained "positive" about continued margin recovery during the current year.
However, it acknowledged that labour supply remained tight across the hospitality sector. Targeted pay increases, alongside planned refurbishment and IT spend, meant total costs are now expected to increase by between £20m and £30m this year.
Brittain said: "This impressive first quarter performance together with improved visibility into the second quarter gives us increased confidence in delivery a strong first half and remaining ahead of the market for the rest of the year."
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