Leisure/Retail: Growth at Costa and Premier Inn drives 16.5% surge in profits at Whitbread

Profits at coffee chain Costa have increased by nearly 22% over the past year. Profits at coffee chain Costa have increased by nearly 22% over the past year.

Tuesday, April 29, 2014
8:37 AM

Britain’s burgeoning coffee shop culture has helped the Costa chain grow annual profits by more than a fifth as sales and store numbers surged.

To send a link to this page to a friend, you must be logged in.

The chain sold 400 million drinks in the year to February 27 as revenues rose by 21.9% to £807.7million, during a period when 177 new outlets were opened to take the total number in the UK to 1,755.

Costa’s domestic like-for-like sales were up 5.7% and underlying operating profits grew 21.9% to £109.8m while worldwide sales of £1.2billion were on track to reach a target of £2bn by 2018, owner Whitbread said.

Finance director Nicholas Cadbury said Costa was “continuing to benefit from the socio-economic changes favouring coffee shops”.

The performance helped Whitbread to a better-than-expected 16.5% surge in underlying pre-tax profits to £411.8m, on revenues of £2.29bn.

It was also helped by the performance over the final quarter of its UK hotels and restaurants Premier Inn, Brewers Fayre and Beefeater.

Successful Christmas and New Year campaigns combined with better January and February weather helped them achieve like-for-like sales growth of 7.3% in the final three months of the financial year, compared with 2.7% in the previous quarters.

Meanwhile, online hotel reservations as a proportion of total bookings grew to 85%. Plans to expand the number of rooms to 75,000 by 2018 include more than doubling those in London to 20,000.

Premier Inn revenues for the year were £967.9m, with like-for-like sales climbing 5%. Restaurants turnover climbed to £526.1m, with a like-for-like rise of 1.6%, though this was lower than the year before.

Whitbread said it was increasing its full-year dividend by 19.9%. The group, which employs 43,000 people, said it added 3,000 new net jobs in the year.

Chief executive Andy Harrison said: “We had a strong finish to last year, with all our brands performing well, boosted by good Christmas and New Year campaigns and helpful weather comparatives.

“The first two months of the new financial year have started positively, with good trading again helped by relatively soft comparatives which will become tougher as we move into the second half of this year.”

0 comments

Comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.


We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Forgotten your password?


Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

ADVERTISEMENT

ADVERTISEMENT

loading...

ADVERTISEMENT

ADVERTISEMENT