Whitbread’s Interim Results: Profitability Pressured Despite Strong Premier Inn UK Performance in Q2

Whitbread PLC (LON:WTB) released its H1 FY26 results, revealing a mixed performance with revenue and profit declines despite continued market outperformance by Premier Inn in the UK.

While the company reaffirmed its commitment to shareholder returns, the numbers highlight challenges in the current economic environment.

Headline Numbers:

• Revenue: £1.541 billion, down 2% compared to £1.570 billion in H1 FY25.
• Adjusted Profit Before Tax: £316 million, a 7% decrease from £340 million in H1 FY25.
• Adjusted Basic EPS: 133.7p, a 2% decrease from 137.1p in H1 FY25.
• Dividend per share: Maintained at 36.4p.

The results reflect broadly flat UK total accommodation sales, positive momentum in Germany, offset by the anticipated lower food and beverage sales due to the continued implementation of Whitbread's Accelerating Growth Plan (AGP).

For Premier Inn UKK, the company explained that total accommodation sales were broadly in line with last year and RevPAR was down (1)% “reflecting a soft first quarter followed by a return to market growth in the second quarter.

“The strength of our commercial initiatives meant we outperformed the M&E market by +0.7pp on total accommodation sales growth, +1.0pp on RevPAR growth and increased our RevPAR premium to £6.10,” stated Whitbread.

Meanwhile, the company said it is on track to deliver incremental adjusted PBT of at least £300m by FY30.

The Board has declared an interim dividend of 36.4p per share (H1 FY25: 36.4p) and the company is on track to complete its previously announced £250m share buy-back by 30 April 2026, with 3.6m shares purchased so far for a total consideration of approximately £108m.

CEO Dominic Paul stated, “We remain focused on disciplined capital allocation and increasing financial returns. Having completed £99m of sale and leasebacks at attractive yields and with the updated valuation of our estate, we are on track to recycle £1bn by FY30 to fund future high-returning growth, such as our Accelerating Growth Plan, and increase our return on capital employed.”