Whitbread reports jump in sales and profits

Pub and restaurant operator Whitbread has reported a near 30 per cent rise in its pre-tax profits in the last six months.

Reporting half year financials to September 2, the Beefeater and Brewers Fayre-owner said total revenue was up 14.5 per cent to £805.4m from £703.3 in the previous six months.

Over the same period, like-for-like sales were up 7.8 per cent.

Profits before tax were £151.8m - up 28.4 per cent from £118.2m.

Whitbread chairman Anthony Habgood said the increase was down to the company adapting its business model to offer more value deals during the recession.

He said: "This is an excellent set of results, demonstrating the success of our focused strategy and drive to meet the needs of our customers. The strong like for like and overall sales performances show how well we have positioned ourselves in challenging market conditions."

He added words of praise for outgoing chief executive Alan Parker, who will be succeeded by Andy Harrison.

"Under his (Parker's) leadership Whitbread has grown to become the UK's leading hospitality company and is in good health, with strong prospects for the future."

Parker added: "These results are testimony to the success of our initiatives to increase market share through organic network expansion and attracting more customers to our hotels, restaurants and coffee shops.

"Our margins have improved as the benefits of both our structural and operating cost reduction programmes are realised."

Whitbread has also seen Premier Inn's occupancy rate rise nine per cent to 79 per cent and operating profits at Costa up 55.6 per cent.

Parker added: "Whitbread has performed strongly in both good times and during the recession and is well placed to grow in the current environment. While the economic outlook remains uncertain, we are confident in the outturn for the year."