Premier Inn and Costa owner Whitbread expected to increase revenues on the back of international expansion

Alys Key
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Dubai - 2017
Costa has expanded both in the UK and internationally (Source: Getty)

Costa owner Whitbread is expected to report revenue growth on the back of expansion when it reveals results for the six months to the beginning of September on Tuesday.

Consensus forecasts expect the group’s revenue to be £1.6bn for the period, with underlying earnings rising to nearly 138p per share.

Analysts at Deutsche Bank forecast 9.5 per cent growth in Costa’s revenue, due to site rollouts, but said like-for-like sales in the UK were likely to only grow around 0.8 per cent.

Costa has expanded its store portfolio both internationally and at home through a mix of owned and franchised stores.

Last week Whitbread said it had taken full ownership of its Chinese joint venture in a £36m deal, in a bid to increase the current number of stores in the country to 700 in 2020 compared to the current portfolio of just over 400.

Deutsche Bank predicted 4.6 per cent growth in underlying earnings to £344m.

For Premier Inn, Whitbread’s hotel business, revenue was expected to be up nine per cent, despite a slight slowdown in London during August.

Whitbread also owns restaurant brands including Beefeater, but analysts expect moderate trading from these due to a “flat market".

Read more: Costa owner Whitbread's shares slump on analysts' downbeat growth outlook

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