Whitbread (WTB) H1 2025 earnings summary

Executive summary

• Statutory revenue was flat at £1,570m for H1 FY25, with robust UK accommodation sales and strong 21–22% growth in Germany, offset by softer UK demand and lower F&B sales due to the Accelerating Growth Plan (AGP).

• Adjusted profit before tax declined 13% to £340m, mainly due to lower UK revenues and AGP transition, while statutory profit before tax dropped 22% to £309m.

• Germany delivered improved profitability, with more established hotels progressing towards maturity and on track to break even on a run-rate basis this year.

• Shareholder returns totaled £278m in H1 FY25 through dividends and buybacks, with an interim dividend increased to 36.4p per share and a further £100m buyback announced.

• The Five-Year Plan targets at least £300m incremental profit before tax and over £2bn for shareholder returns and high-returning investments by FY30.

Financial highlights

• Adjusted EBITDAR was £611m, down 3% year-over-year; adjusted operating profit fell 7% to £413m.

• Statutory profit before tax was £309m after £31m in adjusting items; adjusted basic EPS declined 6% to 137.1p.

• UK adjusted profit before tax down 12% year-over-year at £357m; UK pre-tax margin at 24.6%.

• Germany statutory revenue up 21% to £115m; adjusted loss before tax reduced to £9m from £14m.

• Net debt at period end was £370m; lease-adjusted leverage at 3.1x, within the 3.5x threshold.

Outlook and guidance

• Confident in improved second-half performance, with increased dividend per share and £100m share buyback.

• No changes to FY25 guidance except increased cost savings target to £60m; net UK inflation expected at 2–3%.

• Germany remains on track to reach run-rate breakeven this year; property-related transactions expected to yield £175m–£225m.

• Five-Year Plan targets at least £300m incremental PBT and over £2bn for shareholder returns and investments by FY30.

• Forward-looking statements subject to risks and uncertainties, including market demand and cost inflation.