Despite growth in profits for Costa Coffee and Premier Inn, shares in Whitbread (LON:WTB) have fallen by almost six percent in the “tougher” consumer environment.
Worldwide acceleration of Costa Coffee helped boost sales by 10.7 percent following the opening of 255 new stores and 1,585 installations of the new Costa Express machines.
Premier Inn also saw like-for-like sales up by 2.3 percent, down from 4.2 percent in the previous year.
The hotel chain struggled in London where like-for-like RevPAR growth fell by 3.3 percent. The company also plans to withdraw from South East Asia and India over the next year.
Whitbread is currently in the middle of a new cost-saving plan, announced in November. Chief executive Alison Brittain has said that the £150 million plan had helped maintain margins”.
“Whilst we are only seven weeks into our new financial year Premier Inn has had a good start to the year and Costa has also seen positive like-for-like sales growth, although we remain cautious and expect a tougher consumer environment than last year,”
In the longer term we remain confident that, with our significant structural growth opportunities, the power of our brands and the investments we are making, we will continue to deliver strong returns and sustainable long-term growth for our shareholders” she added.
The group’s outgoing and outgoing chief executive, David Bellamy, said: “Looking ahead, whilst political and macro uncertainties persist, the more immediate concern for many people relates to personal financial matters, particularly in relation to long-term savings, protecting and preserving wealth, tax and intergenerational planning.”
“In this regard, the scale and quality of our relationship-based and advice-led approach to the management of our clients’ financial affairs, together with our investment management proposition, means we are increasingly well placed to meet this growing need for trusted advice.”
The company’s share price fell to £40.57.