Top

Costa Coffee helps Whitbread increase revenue

April 30, 2010

According to Whitbread, owner of Premier Inn hotel chain, full-year profits increased by 6.6 per cent largely due to its newest Costa Coffee chain. Costa Coffee chain sales surged this year bringing in an additional revenue for the budget hotel giant.

“Flat white” coffee, introduced back in January, as well as the addition of 312 new retail outlets for the coffee chain, have accounted for a rise in sales for the product. The acquisition of Coffeeheaven International in December has also allowed Whitbread to expand into Eastern Europe with the chain.

According to Alan Parker, Whitbread’s chief executive, Costa has enjoyed 32 consecutive quarters of growth for its like-for-like sales. He added that the main causes for an outstanding market performance by Costa is its strong stance as a preferred brand as well as the company’s efforts to expand across the UK and overseas.

Mr Parker stressed that Whitbread has continually maintained a strong performance during challenging conditions in the industry. The hotel groups underlying profits continued to increase despite a waning economy and drops in industry sales across the board, said the chief executive. Mr Parker continued, adding that Whitbread had also been able to reduce net debt, while acquiring new ventures such as Coffeeheaven International.

For the year up to March, total sales at Premier Inn rose 4.7 per cent to a total of £629.8 million. Underlying profits prior to taxes increased by £239.1 million. This is up from £224.4 million for the 2008-2009 fiscal year. Figures were released in a statement made by Whitbread on Thursday.

Comments

Comments are closed.

Bottom