Whitbread (WTB) H1 2027 (Q&A) earnings summary

Executive summary

• H1 FY27 accommodation sales and RevPAR outperformed the midscale and economy market in the UK & I and Germany; UK & I like-for-like sales momentum continued for a fifth consecutive quarter.

• Adjusted EBITDAR rose 1% to £608m; adjusted PBT fell 9% to £287m amid higher costs and planned Germany investment.

• Five-Year Plan execution is progressing, targeting £275m incremental adjusted PBT and £2bn available for shareholder returns by FY31.

Financial highlights

• Statutory revenue rose 2% to £1,572m; adjusted operating costs increased 2% to £963m and adjusted EBITDAR rose 1% to £608m.

• Adjusted PBT fell 9% to £287m; statutory PBT fell 62% to £109m after £178m of adjusting charges, primarily non-cash.

• Adjusted basic EPS declined 6% to 125.1p; the interim dividend was maintained at 36.4p per share.

• Adjusted operating cash flow was £389m versus £406m; H1 capital investment was £280m and closing net debt was £663m.

Outlook and guidance

• FY27 confidence is supported by positive forward bookings and current trading; Germany is on track for a second consecutive profitable year.

• FY27 UK accommodation sales guidance is +1% versus H1 FY26; gross cost inflation is 6.5%–7.5%, efficiencies £60m and net inflation 3%–4%.

• FY27 plans include ~1,000 UK new rooms, ~750 AGP extension rooms and 2,300 Germany room openings; property proceeds of £450m–£500m remain planned.

• By FY31, the plan targets £275m incremental adjusted PBT, 500bps higher Group ROCE and £2bn of free cash flow available for shareholder returns.

• FY27 efficiencies target £60m, following £39m delivered in H1; growth capex targets at least 15% ROCE.