TIDMWTB
RNS Number : 4548M
Whitbread PLC
12 January 2023
Continued positive trading momentum driven by
strong performance in the UK and further progress in Germany
Throughout this release percentage growth comparisons are
comparing the current year (Q3 FY23) performance for the 13 weeks
to 1 December 2022 to the same period in FY22, or FY20, the last
financial period before the onset of the COVID pandemic.
Q3 FY23 summary
vs last year (FY22) vs pre-pandemic (FY20)
------------------ --------------------------- -----------------------------
UK Germany Total UK Germany Total
------------------ -------- -------- -------- ------- -------- ---------
Sales
growth:
23.8 172.8 28.3 36.9 770.2 44.7
Accommodation % % % % % %
-------- ---------
Food
& 8.4 91.1 (3.7) 539.5 (1.3)
beverage % % 9.7 % % % %
19.2 158.0 22.9 23.0 730.1 29.0
Total % % % % % %
================== ======== ======== ======== ======= ======== =========
Like-for-like
sales
growth:
20.6 91.0 22.8 26.6 29.4 26.6
Accommodation % % % % % %
--------
Food
& 6.9 39.4 (7.6) 7.0 (7.6)
beverage % % 7.4 % % % %
-------- ---------
16.6 81.7 18.3 14.8 25.9 14.9
Total % % % % % %
------------------ ======== ======== ======== ======= ======== =========
Q3 FY23 highlights
-- Premier Inn UK: continued outperformance with total
accommodation sales 24.1pp ahead of the midscale and economy
('M&E') market(1) in Q3 FY23
-- Total UK accommodation sales were 24% ahead of Q3 FY22 and
37% ahead of Q3 FY20, driven by a combination of increased
occupancy, higher average room rate and estate growth with a strong
performance across both London and the Regions
-- F&B sales were 8% ahead of Q3 FY22 and while this
remained 4% behind Q3 FY20, we have launched a series of
initiatives to help increase sales
-- Premier Inn Germany: continued growth in revenues, led by our
more established hotels that performed particularly strongly in
what is an important trading period
-- We now have 45 open hotels in Germany with a further 36 in the pipeline
-- Our strong operating cashflow has continued to fund our
ongoing investment in both the UK and Germany whilst maintaining a
healthy balance sheet and net cash at 1 December 2022 was
GBP284m.
Current trading(2) and outlook
-- Strong trading momentum continued with total UK accommodation
sales up 25% versus FY22 and up 36% versus FY20, representing a
26.3pp outperformance of the M&E market(3)
-- Given t he decline in market supply and the success of our
own commercial initiatives, we expect pricing to remain strong
-- UK F&B sales were 13% ahead of FY22 and 6% behind FY20
-- In Germany, our trading performance remained well ahead of
both FY22 and FY20. Our more established hotels are competing well
in the German midscale and economy market and we remain comfortable
with our improved FY23 guidance of a pre-tax loss between GBP40m -
GBP50m
-- Whilst there is no change to FY23 cost guidance, looking
ahead, we expect net cost inflation on our c.GBP1.6bn UK cost base
to be between 7% and 8% in FY24, including labour, F&B and
utilities that are now 75% hedged for FY24, partially offset by
lower business rates
-- With an encouraging forward booked position in the UK,
pricing expected to remain strong, further estate growth and our
ongoing efficiency programme, we remain confident in the FY24
outlook
-- The outlook for our German hotels remains very encouraging
and we remain committed to our long-term strategy
Comment from Alison Brittain, CEO:
"Premier Inn UK delivered another excellent quarter with a
strong performance, both in absolute terms and also relative to the
broader midscale and economy sector. The uplift in accommodation
sales was driven by a strong performance across London and the
Regions, with both remaining significantly ahead of last year and
pre-pandemic levels and with a well-balanced mix of business and
leisure guests. These revenue trends have continued into the fourth
quarter, with good occupancy and high average room rates sustaining
strong RevPAR growth and UK food and beverage sales remain well
ahead of last year.
"Premier Inn Germany had another robust quarter, led by our
cohort of more established hotels that are performing particularly
well and are attracting excellent guest scores. This performance
underpins our enthusiasm about the market opportunity and our
confidence in being able to achieve a long-term target of 10-14%
return on capital.
"Despite a more challenging period for the UK economy, our
winning business model continues to deliver outstanding value and
quality for our guests. The strength of our forward booked
position, robust pricing, estate growth and efficiency programme
all underpin our confidence in the outlook for FY24. In Germany,
our potential remains significant and we are well on the way to
unlocking substantial value in this large and exciting market.
"It has been an enormous privilege to lead Whitbread over the
last seven years and I am pleased to be handing over to incoming
CEO Dominic Paul at a time when the business is performing well and
when prospects for the future look bright. We have a strong balance
sheet and compelling growth opportunities both in the UK and in
Germany, and having worked with Dominic I know that he will bring
great energy and drive to delivering them. I wish him and all my
Whitbread colleagues every success for the future."
Notes:
1: STR data, full inventory basis, 2 September 2022 to 1
December 2022, M&E market excludes Premier Inn
2: Five week period to 5 January 2023
3: STR data, full inventory basis, 2 December 2022 to 29
December 2022, M&E market excludes Premier Inn
For more information please contact:
Investor Relations - Whitbread
investorrelations@whitbread.com
Peter Reynolds, Director of Investor Relations
peter.reynolds@whitbread.com
Abigail Cammack, Investor Relations Manager
abigail.cammack@whitbread.com
Sophie Nottage, Investor Relations Manager
sophie.nottage@whitbread.com
Media - Tulchan whitbread@tulchangroup.com
Jessica Reid +44 (0) 20 7353 4200
A live Q&A teleconference for investors and analysts will be
held at 9:15am GMT on 12 January 2023. Details to join are noted
below. An on-demand version of this will be made available on the
website (
www.whitbread.com/investors/results-reports-and-presentations )
shortly after.
Q&A teleconference participant dial-in numbers:
Start time - 9:15am GMT
United Kingdom (Local): 020 3936 2999
All other locations: +44 203 936 2999
Participant Access Code: 573482
Appendix
1) Premier Inn UK key performance indicators
Q1 Q2 Q3 YTD
================================== ========= ========== ========== =========
London
Occupancy (full inventory) 83.5% 87.2% 87.3% 86.0%
Average room rate GBP85.57 GBP102.60 GBP107.06 GBP98.62
Revenue per available room GBP71.42 GBP89.42 GBP93.49 GBP84.79
Total accommodation sales growth
vs FY20 30.6% 38.2% 41.7% 37.2%
================================== ========= ========== ========== =========
Regions
Occupancy (full inventory) 82.4% 87.1% 85.2% 84.9%
Average room rate GBP63.37 GBP74.87 GBP68.20 GBP68.92
Revenue per available room GBP52.23 GBP65.19 GBP58.09 GBP58.51
Total accommodation sales growth
vs FY20 31.2% 37.9% 35.4% 35.0%
================================== ========= ========== ========== =========
Total
Occupancy (full inventory) 82.6% 87.1% 85.5% 85.1%
Average room rate GBP67.17 GBP79.57 GBP74.95 GBP74.02
Revenue per available room GBP55.48 GBP69.30 GBP64.12 GBP62.97
Total accommodation sales growth
vs FY20 31.0% 38.0% 36.9% 35.5%
================================== ========= ========== ========== =========
Outperformance vs M&E market(1) 26.6pp 25.4pp 24.1pp 25.3pp
================================== ========= ========== ========== =========
F&B
Total food and beverage sales
growth vs FY20 (4.3)% (5.8)% (3.7)% (4.6)%
================================== ========= ========== ========== =========
Total sales growth vs FY20 18.1% 23.2% 23.0% 21.5%
================================== ========= ========== ========== =========
2) Premier Inn Germany key performance indicators
Q1 Q2 Q3 YTD
================================== ========= ========= ========= =========
Occupancy (full inventory) 57.1% 69.0% 61.9% 62.9%
Average room rate GBP52.16 GBP57.52 GBP76.95 GBP62.84
Revenue per available room GBP29.78 GBP39.70 GBP47.64 GBP39.53
Total accommodation sales growth
vs FY20 994.9% 1,870.5% 770.2% 1,043.7%
================================== ========= ========= ========= =========
Total food and beverage sales
growth vs FY20 929.7% 1,175.8% 539.5% 778.3%
Total sales growth vs FY20 984.0% 1,725.2% 730.1% 996.0%
================================== ========= ========= ========= =========
3) UK Quarterly sales & RevPAR growth versus FY20
FY23
Q1 Q2 Q3 YTD
% % % %
============================== ======= ======= ======= =======
Accommodation 31.0% 38.0% 36.9% 35.5%
F&B (4.3)% (5.8)% (3.7)% (4.6)%
Premier Inn UK total sales
growth 18.1% 23.2% 23.0% 21.5%
============================== ======= ======= ======= =======
Regions 31.2% 37.9% 35.4% 35.0%
London 30.6% 38.2% 41.7% 37.2%
Premier Inn UK accommodation
sales growth 31.0% 38.0% 36.9% 35.5%
============================== ======= ======= ======= =======
Accommodation 21.5% 26.9% 26.6% 25.1%
F&B (8.0)% (9.8)% (7.6)% (8.5)%
Premier Inn UK LFL sales
growth 10.6% 14.5% 14.8% 13.4%
============================== ======= ======= ======= =======
Regions 22.6% 29.3% 27.8% 26.8%
London 11.3% 18.0% 21.5% 17.2%
Total RevPAR growth 20.7% 27.4% 27.2% 25.3%
============================== ======= ======= ======= =======
Regions 22.4% 27.9% 26.9% 25.9%
London 13.3% 18.1% 21.2% 17.8%
LFL RevPAR growth 20.4% 25.7% 25.5% 24.0%
============================== ======= ======= ======= =======
Regions 14.9% 20.2% 19.5% 18.3%
London 8.6% 19.2% 23.3% 17.5%
Midscale & Economy market
total sales growth(1) 12.8% 20.4% 20.2% 18.0%
============================== ======= ======= ======= =======
Regions 14.4% 19.9% 19.6% 18.1%
London 3.1% 12.5% 15.7% 10.9%
Midscale & Economy market
total RevPAR growth(1) 11.5% 19.1% 19.1% 16.8%
============================== ======= ======= ======= =======
4) Q3 YTD sales growth
vs last year (FY22) vs pre-pandemic (FY20)
------------------ ------------------------- ---------------------------------
UK Germany Total UK Germany Total
------------------ ------- -------- ------- ------- -------- -------------
Sales growth:
66.1 263.3 35.5 1,043.7 42.0
Accommodation % % 70.9 % % % %
------- -------------
Food
& 54.0 190.2 (4.6) 778.3 (2.5)
beverage % % 55.8 % % % %
62.6 250.6 21.5 996.0 26.5
Total % % 66.5% % % %
================== ======= ======== ======= ======= ======== =============
Like-for-like
sales
growth:
60.3 156.3 25.1 37.3 25.2
Accommodation % % 62.6 % % % %
-------
Food
& 51.2 115.9 12.5 (8.5)
beverage % % 52.0 % (8.5)% % %
------- -------------
57.7 149.4 13.4 33.0 13.5
Total % % 59.6 % % % %
------------------ ======= ======== ======= ======= ======== =============
Notes:
1: STR data, full inventory basis, 4 March 2022 to 1 December
2022, M&E market excludes Premier Inn
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