Whitbread sales in line with expectations

16th June 2009, 10:21am

Whitbread, owners of Costa Coffee, Brewers Fayre and Table Table, has started the new financial year in line with expectations with total sales up 2.5%, despite the harsh economic conditions.

Like for like sales at pub restaurants increased by 2.0%. And total sales, excluding the 44 sites disposed of in September 2008, were up 7.4%

Costa also delivered a market leading sales performance, benefiting from its marketing campaign - 7 out of 10 coffee lovers prefer Costa. Total sales were up 18.5% year on year and like for like sales grew by 2.6%. Excluding airports Costa's like for like sales grew by 4.5%.

However on the down side, like-for-like sales for the group were down 2.7% after a sharp reversal in trading figures at budget hotel brand Premier Inn, reported the group's trading performance for the 13 weeks to 28 May 2009.

The restaurant group also said that revenues from Premier outlets were down 7.9% with the figure per available room showing a drop of 9.6%.

Alan Parker, chief executive officer of Whitbread, said: "In the declining market, we have maintained sales through our Business Account card, with total accounts increasing 14% year on year. We plan to build on our position by continuing to offer value for money and a strong focus on sales, which includes widening our reservation network and implementing the next phase of our new revenue management system.

"As announced at the annual results in April, we also intend to expand our share of the leisure market. This month we launched Premier Offers, with hotel rooms from just £29 per room per night. In the period we opened six new hotels and 838 new rooms and are on course to deliver some 2,000 new rooms in the UK and overseas this year."

Parker concluded: "We believe that Whitbread's brands are well placed in their markets, although the outlook is challenging.  We will continue to play to our strengths and we are focused on our three key priorities: to outperform our competition, to achieve cash flow neutrality and to reduce operating costs."

Related Articles:

• 11 Apr 2012 - Whitbread appoints new managing director of Costa Coffee
• 13 Dec 2011 - Hotel and restaurant group Whitbread achieves total sales growth of 11.4%
• 12 Aug 2011 - Whitbread hotel and restaurant group to sell and lease back seven Premier Inn properties
• 28 Apr 2011 - Whitbread achieves strong revenue growth with sales up 6.6%
• 02 Mar 2011 - Costa reveals Coffee Nation acquisition
• 28 Jan 2011 - Whitbread welcomes new non executive director to the board
• 07 Sep 2009 - Whitbread's total group sales rise by 2.4%
• 02 Sep 2009 - Whitbread achieves top grade for hospitality programme
• 20 Aug 2009 - Whitbread launches environment report
• 29 Apr 2009 - Whitbread remain positive after mixed performance
• 25 Mar 2009 - Whitbread launches Apprenticeship Programme
• 11 Mar 2009 - Whitbread embarks on skills for life training
• 09 Mar 2009 - Whitbread well positioned for challenging year ahead
• 08 Dec 2008 - Whitbread beating the credit crunch

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