Sales perc up for Costa giving boost to Whitbread group

The retailer, which is part of the Whitbread leisure group, grew total worldwide sales by 19.5 per cent to £569.2m in the six months to August 29, while underlying profits were 20.5 per cent higher at £43.5m.

It added a net 86 stores in the UK, meaning its estate of 1,664 outlets in locations ranging from high streets and shopping centres to motorway service areas and garage forecourts is now 800 greater than its closest competitor.

The number of Costa coffee shops in Yorkshire currently stands at 76.

The chain also recently marked the milestone of 1,000 international stores with a new outlet in Bangkok.

Costa’s continued strong growth combined with further market share gains at budget hotel Premier Inn to help Whitbread post a rise in half-year underlying profits of 12.6 per cent to £216.1m.

Premier improved like-for-like sales by 3.3 per cent and added 1,368 UK rooms, taking its total to 53,039. Revenues grew by 12.2 per cent to £497.4m.

Revenue per available room (RevPAR), a key industry measure, grew ahead of the market at 1.7 per cent in London where the firm is expanding, but lagged peers such as an improving Travelodge in the regions – where around 85 per cent of Premier Inn’s rooms are – growing at 2.1 per cent against six per cent for the sector.

Across the group, Whitbread said it created 1,200 new UK jobs over the period, with a further 10,000 expected in the next three years.

In April 2011, the company pledged to grow the number of Premier Inn rooms in the UK by around 50 per cent to 65,000 by 2016. It extended the target in April to 75,000 by 2018.

The company expects to open around 4,000 new Premier Inn rooms in the current financial year and a further 4,500 in 2014/15.

Chief executive Andy Harrison said Whitbread has delivered another good performance with double digit growth. He added: “This good first half performance puts us on track to deliver this year’s business plan and we remain on the right trajectory for our 2016 and 2018 growth milestones.”

“Our combination of strong organic growth, good returns on capital and strong cash flow should continue to create substantial shareholder value.”

Whitbread, which makes almost all its sales in Britain, has expanded rapidly due to demand from cost-conscious customers for affordable hotels and a rising popularity for takeaway coffee.