By Max Clarke
Costa Coffee’s parent company, Whitbread (LSE:WTB), has delivered a stellar performance for the year’s first quarter, boosting revenue by 11% to over £1.5 billion.
In line with the company’s announcement, following the purchase of independent rival Coffee Nation, that it would increase the number of Costa outlets to 3,000, the company have pledged a further 15% expansion of the brand.
“We are already growing faster and will add around 4,000 new Premier Inn UK rooms and around 300 Costa stores this year and we have set new five year milestones. These milestones will increase the number of Premier Inn UK rooms by 50% to 65,000 and double the size of Costa to 3,500 stores worldwide over the next five years,” said Whitbread’s CEO, Andy Harrison.
Other highlights from the UK company, which also provides catering for pubs as well as owning the UK’s most popular hotel chain, Premier Inn, include a 20% jump in pre tax profits; a 6.6% jump in year-on-year sales and an 8% reduction in the company’s debt.
Anthony Habgood, Chairman of Whitbread PLC said:
“Whitbread achieved strong revenue, profits and EPS growth in 2010/11 despite market conditions which have become progressively more challenging. Our increasingly focused strategy and drive to meet the needs of our customers enabled us to deliver another excellent set of results with a 17% higher dividend and position us well to accelerate our expansion plans.”