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, while statutory PBT was £109m after £178m of adjusting charges.

• Five-Year Plan targets £275m incremental adjusted PBT, 500bps higher ROCE and £2bn available for shareholder returns by FY31; management remained confident in FY27 guidance.

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 and statutory profit after tax fell 72% to £62m.

• 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

• First five weeks: UK & I accommodation sales rose 4.5% and RevPAR 3.2%; Germany accommodation sales rose 31.2% in local currency.

• FY27 UK accommodation sales are expected to grow 1% versus H1 FY26; gross cost inflation is guided at 6.5%–7.5%, efficiencies at £60m and net inflation at 3%–4%.

• FY27 plans include ~1,000 UK new rooms, ~750 AGP extension rooms and 2,300 Germany room openings; gross capex is £700m–£750m and property proceeds £450m–£500m.

• Germany underlying adjusted PBT is expected to increase £10m versus FY26 before a £10m in-year impact; positive cash flow is targeted in FY29, with a second consecutive profitable year expected.

• FY31 plan targets £275m incremental adjusted PBT, offsetting £110m of higher business-rate costs, and a 500bps increase in ROCE; growth capex targets at least 15% returns.