• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Whitbread UK sales steady, Germany shines

by January 16, 2025
written by January 16, 2025

Investing.com — Whitbread (LON:WTB) on Thursday reported a modest sales in the UK for the third quarter of fiscal year 2025. 

The owner of Premier Inn, reaffirmed its five-year growth plan, with no changes to its previously stated outlook for the fiscal year.

Premier Inn’s UK accommodation sales remained stable compared to the same period in the previous year.

Despite broader economic challenges, total UK accommodation sales were up by 2% in the six weeks leading up to January 9. 

“We expect the bond refinancing to drive consensus down to c.£510-515m,” said analysts at Jefferies in a note. 

Food and beverage revenues, however, declined in line with expectations, driven by adjustments under Whitbread’s accelerating growth plan.

Germany emerged as a standout performer for Whitbread during the quarter, with a 19% increase in total sales, boosted by strong accommodation sales growth of 23% in local currency terms. 

The group’s German operations are on track to achieve profitability on a run-rate basis this year—a milestone for Whitbread’s ambitions in the region. Additionally, the average revenue per available room for Premier Inn’s mature German properties outperformed the broader midscale and economy market.

“The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic,” said Dominic Paul, chief executive at Whitbread, adding that the group remains optimistic about its ability to deliver incremental profit and maintain market leadership despite limited forward visibility.

Group-wide sales reported a slight decline, down 2%, reflecting mixed performance across geographies and product segments. 

However, Whitbread remains focused on its strategic goals, including delivering £300 million in incremental profit through a combination of dividends and share buybacks.

Whitbread also reported substantial progress in cost efficiency, mitigating the effects of inflation and other financial pressures. 

Despite a reduction in net finance income and expected cost increases, operational efficiencies are projected to keep net cost inflation manageable at around 2-3%.

The company reaffirmed its confidence in achieving its fiscal year 2025 objectives, citing sustained growth prospects and robust brand foundations. 

Whitbread’s ongoing expansion in Germany and its focus on maximizing value within the UK market provide a solid foundation for continued growth into fiscal year 2026.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Earnings results, inflation data should rejuvenate bank stocks: BofA
next post
Bull market remains intact, UBS says

You may also like

BASF results down on impairments, restructuring

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Berkshire Hathaway employee wins $1 million in Warren Buffett’s March Madness bracket challenge
    • Peabody’s $2.32 billion deal for Anglo American coal assets called ‘transformative’

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy