UK's Whitbread H1 revenue rises on accommodation sales

Overview

• UK hotel operator's H1 FY27 group revenue rose 2% yr/yr, driven by accommodation sales growth

• Adjusted profit before tax fell 9% yr/yr, impacted by cost inflation and transition costs

• Adjusted EPS for H1 FY27 declined 6% yr/yr

Outlook

• Whitbread remains confident in its full-year outlook

• Company expects a second consecutive year of profitability in Germany in FY27

• Company says strong trading momentum continues but market demand visibility remains limited

Result Drivers

• COMMERCIAL INITIATIVES - Co said brand strength, marketing and technology-led enhancements drove positive sales momentum and market outperformance

• COST EFFICIENCIES - £39m in cost savings helped offset inflationary pressures, per co

• GERMANY EXPANSION - Double-digit accommodation sales growth in Germany was supported by new room openings, per co

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Whitbread PLC is GBp2,600.00, about 3.6% above its October 12 closing price of GBp2,510.00

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)