Thursday, February 21, 2019

Costa Coffee brews still strong: Whitbread‘s first-half results


Costa Coffee owner Whitbread has reported that its first-half pre-tax profits have exceeded expectation, rising 13.8% to £291.3m 

An 11% increase in total sales to £1.44bn was also reported with Costa making a profit of £67m.  

These are the final set of results to be reported under the leadership of Chief Executive Andy Harrison.  

Harrison, who has held the position for five years said that Whitbread‘s two leading sectors “have delivered strong organic growth and continue to win market share.” He added that the company plans to invest £700m this year to maintain its high standards and improve the consistency of its products.  

The company is still on track for the opening of 220 new Costa stores, including 50 stores in China this year.  

Whitbread expects the new National Living Wage regulations that are to be released in April 2016 to cost the business around £15 to £20m a year. To mitigate these costs it will focus on cutting costs elsewhere.  

Former Lloyds Retail group boss Alison Brittain will succeed Harrison in December.