16th Jan 2020 08:41
(Alliance News) - Whitbread PLC said Thursday it delivered a "robust" performance in the third quarter despite challenging market conditions in the UK and it is on track to achieve its full year expectations.
In a trading update for the third quarter of its financial year, the FTSE 100 hospitality firm said UK total sales grew by 0.3%, "marginally improving" the year-to-date run rate.
The company said its performance reflects robust results from its Food & Beverage unit, and marginally declining total accommodation sales.
Weak business and leisure confidence in the regions continued, which was partially offset by the strength of the central London marked, where the company outperformed.
Whitbread said total sales of Premier Inn UK were down 0.4%, compared to 0.1% growth in the second quarter. In London, sales grew 5%. Meanwhile like-for-like Premier Inn UK sales were down 2.1%.
UK Food & Beverage sales were up 1.9% in the third quarter, with like for like sales rising 0.4%, the company noted.
Meanwhile growth in Germany "remains firmly on target" and the company continues to extend the total committed pipeline.
Looking ahead, in 2021 the company expects net margin headwind of about GBP60 million due to inflation, wages and other costs.
Also, the company said it takes the cautious approach to hotel demand, especially relating to business customer demand in the regions.
Whitbread shares were down 4.8% in London at 4,605.00 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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