Whitbread (WTB) H1 2025 (Q&A) earnings summary

Executive summary

• Group statutory revenue was £1,570m, flat year-over-year, with UK softness offset by strong 21–22% growth in Germany.

• Adjusted profit before tax declined 13% to £340m, impacted by lower UK revenues and transitionary effects from the Accelerating Growth Plan (AGP).

• The Accelerating Growth Plan is progressing, optimizing F&B and unlocking 3,500 new room extensions, with planning applications for over a third submitted.

• Interim dividend increased 7% to 36.4p per share, and a further £100m share buy-back was announced.

• The five-year plan targets at least £300m incremental group profit before tax and over £2bn for shareholder returns by FY30.

Financial highlights

• Adjusted EBITDAR fell 3% to £611m; adjusted operating profit decreased 7% to £413m.

• Statutory profit before tax was £309m, down 22% year-over-year.

• Group ROCE was 11.9% (down 70bps year-over-year); UK ROCE was 14.0%.

• Lease-adjusted net debt to adjusted EBITDAR was 3.1x, below the 3.5x threshold.

• Adjusted basic EPS declined 6% to 137.1p; statutory basic EPS dropped 18% to 121.0p.

Outlook and guidance

• Recent weeks saw improved bookings; strong forward position and commercial initiatives support confidence in H2 like-for-like sales growth.

• Germany remains on track to reach run-rate breakeven in FY25, with accommodation sales up 26% vs FY24.

• FY25 cost efficiencies expected at £60m, above previous guidance; UK net inflation now expected at 2–3%.

• Five-year plan projects at least £2bn in excess free cash flow for dividends, buybacks, and high-return investments.

• No current plans for major M&A; focus remains on organic growth and capital discipline.