Whitbread PLC (LSE:WTB) has underlined its recovery following the Covid pandemic by announcing a £300mln buyback after full-year results that showed revenues jumping by over 50%.
The Premier Inn and Beefeater owner also upped its final dividend to 49.8p, at a cost of £100mln, to more than double the annual level from a year ago.
Full-year revenues jumped by 54% to £2.63bn, which was also 27% higher than 2020, while pre-tax profits soared to £375mln from £58mln.
In the results statement, Dominic Paul, Whitbread's new chief executive, said: "These are a fantastic set of results."
A combination of a recovery in market demand, structural decline in the independent sector plus self-help measures had driven the performance, he added.
Premier Inn saw room rentals jump 55% compared to a year earlier and were 37% ahead of the pre-pandemic period while increased spending at chains such as Brewers Faye and Bar + Block offset lower volumes to increase sales by 40%.
Margins soared almost four-fold to 19.6% despite what Whitbread said was ongoing inflationary pressure with the improvement driven by revenues and cost savings.
Losses in Germany were £50mln after £31mln of impairment charges and it is expected to post a loss of between £20-30mln in the current year.
Otherwise, Whitbread said current trading is "strong" even with the economic uncertainties. Sales are up 17% on the year before reflecting higher room prices with occupancy flat.
Whitbread added that it expects to add 1,500-2,000 rooms in 2024 at a cost of £400-£450mln.