Whitbread Reports 2% Revenue Growth Amidst Strategic Shift

Whitbread PLC announced a 2% increase in statutory revenue to £1,572 million for the first half of FY27, despite a 9% decline in adjusted profit before tax to £287 million. The results, for the 26 weeks ending August 27, 2026, reflect strong accommodation sales growth of 3% in the UK and Ireland, and double-digit growth in Germany, but were offset by costs associated with the company’s ongoing strategic overhaul.

The decline in adjusted profit before tax was attributed to “temporary transition costs” related to the Accelerated Growth Plan (AGP), high cost inflation – including business rates – and impacts from new room openings in Germany. Statutory profit before tax fell more sharply, declining 62% to £109 million, largely due to £178 million in adjusting items, primarily non-cash impairment charges linked to the strategic review and AGP. Consequently, statutory profit after tax decreased by 72% to £62 million, and statutory basic earnings per share dropped by 70% to 36.8p.

Whitbread is currently executing a Five-Year Plan focused on becoming a “more profitable and less capital intensive business.” Key elements of this plan include the closure of all remaining branded restaurants (completed in September 2026), the expansion of extension rooms, and the sale of property assets. The company is on track to recycle between £450 million and £500 million in capital this year through property sales, and maintain net capex between £200 million and £300 million. The group’s Return on Capital Employed (ROCE) increased to 10.9% from 10.3%.

Net debt increased to £663 million from £563 million, and lease-adjusted leverage rose to 3.4x from 3.2x. The Board maintained the interim dividend at 36.4p per share. While accommodation sales demonstrated positive momentum, the significant decline in profitability highlights the short-term costs associated with Whitbread’s strategic transformation. The company continues to navigate a challenging macroeconomic environment, including high inflation and pressures related to business rates, while simultaneously executing a large-scale restructuring program.