Whitbread (WTB) H2 2025 (Q&A) earnings summary

Executive summary

• Accommodation sales in the UK remained flat year-over-year, outperforming the mid-scale and economy market despite softer demand, while Germany delivered strong trading performance with double-digit RevPAR growth and is set for profitability in FY26.

• Group revenues were broadly flat year-over-year, with robust UK results and excellent progress in Germany, outpacing the market in both regions.

• Five-year plan targets over £2 billion in shareholder returns and £300 million incremental profit by FY 2030, with accelerated capital returns including £442 million distributed via buy-backs and dividends in FY25.

• Food and beverage revenues declined as expected due to the Accelerating Growth Plan and exit from lower-returning restaurants, unlocking 3,500 extension rooms.

• Forward-booked revenue is ahead of last year, with strong summer bookings.

Financial highlights

• Group statutory revenue was £2,922 million, down 1% year-over-year; UK revenue £2,691 million (down 3%), Germany revenue £231 million (up 21%).

• Adjusted profit before tax was £483 million, down 14% year-over-year; statutory profit before tax £368 million, down 19%.

• Delivered £75 million in efficiency savings, reducing the UK cost base by 1% and group operating costs by 1%.

• Announced a further £250 million share buyback to be completed over the next 12 months.

• Net capex guidance for FY26 is £400–500 million, with property proceeds of £250–300 million.

Outlook and guidance

• On track to deliver £5–10 million profit in Germany for FY 2026, driven by a 10% RevPAR increase.

• Confident in achieving 98,000 rooms in the UK and 20,000 in Germany by FY 2030, requiring an accelerated pace of room openings.

• Plan fully funded through operating cash flow and property recycling.

• Increased cost efficiencies target of £60 million for the current year; UK net cost inflation at lower end of 2–3%.

• No dependency on strong RevPAR growth to achieve profit and return targets; focus on efficiencies and like-for-like growth.