Premier Inn owner Whitbread PLC (LSE:WTB) has doubled down on guidance after improved trading in Germany but a drop in UK sales over the third quarter.
Group sales declined by 1% on a like-for-like basis to £763 million in the three months to November, on lower accommodation and flat and food and beverage revenue, Whitbread said Thursday.
Like-for-like sales in the UK dropped by 3%, as revenue per room slipped 3%, with turnover up 51% against the 2020 financial year, prior to the pandemic.
Revenue surged 20% across Whitbread’s German business in the meantime, as revenue per room jumped 28%.
“We are making good progress against our strategic priorities [...] and we remain confident in our ability to deliver a step change in profits, margins and returns,” chief executive Dominic Paul said.
He added the plans would deliver incremental profit of at least £300 million by 2030, with 2025 guidance, including for £40 million to £50 million in savings, left unchanged.
“The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic.”
“In Germany, we continued to perform strongly in what is an important trading period. As a result, we remain on track to reach profitability on a run-rate basis this year.”
Whitbread also flagged net UK inflation of 2% to 3% on its £1.7 billion cost base ahead on the back of tax hikes in last October’s Budget.