Whitbread profit up 5%, dividend increased 10%Staff writer ▼ | April 27, 2016
Whitbread recorded a rise in fiscal 2016 earnings and raised its dividend by 10%. Pretax profit for the year ended March 3, was up 5% to 487.7 million pounds ($701.2 million).
Whitbread Pretax profit was $701.2 million
At Premier Inn, the group's budget hotel business, total sales grew 12.9% and like-for-like sales were up 4.2%. Whitbread said Costa coffee-bar chain recorded sales growth of 15.9%.
The company raised its full-year dividend by 10% to 90.35 pence from 82.15 pence.
Chief Executive Alison Brittain said: "Both Premier Inn and Costa benefit from attractive market growth opportunities and we will continue to capitalize on these by developing our network and brand strength as we fulfill our ambitions to reach 85,000 U.K. hotel rooms and GBP2.5 billion system sales in Costa, by 2020."
Ms Brittain, who joined the company late last year, added: "I have identified three key strategic themes to develop the business: grow and innovate in our core U.K. businesses; focus on our strengths to grow internationally; and build the capability and infrastructure to support long-term growth."
This strategy will enable the to deliver its significant growth ambitions, grow earnings and dividends, maintain good returns on capital and create further value for shareholders, she said.
Updating on current trading, Ms Brittain said, "whilst it is only six weeks into our new financial year we remain confident of making good progress this year." ■