Costa Coffee owner posts 2.6% sales growth in Q1

Whitbread said underlying sales at its Costa Coffee chain recovered over the last three months and its Premier Inn hotel brand continued to grow, sending shares in the company 3% higher.

Costa Coffee owner posts 2.6% sales growth in Q1

Costa reported underlying sales growth of 2.6% in the 13 weeks ended June 2, its financial first quarter, recovering from a disappointing 0.5% level it recorded in the 11 weeks to February 11.

It blamed that performance on a mild winter and fewer people on the high street.

In Whitbread’s Premier Inn hotel chain, underlying sales rose 2.1% despite industry data which the group said showed a soft hotel market in Britain and particularly London.

Those performances from its two biggest divisions, which together accounted for over 80% of group sales last year, put it on track to grow this year.

“Although it is early in our new financial year and despite current market conditions, with the benefit of our cost efficiency programme we remain confident of making good progress for the full year,” said chief executive Alison Brittain.

Shares rose 3.2% to 4,174p in initial trading yesterday, making it the top riser on Britain’s bluechip index.

Panmure analyst Anna Barnfather called the Costa performance a “positive surprise”, while Hargreaves Lansdown’s head of equity research Steve Clayton said the hotels result was a relief.

“With some analysts having made bearish calls on the outlook for the hotels business lately, the market took some reassurance from today’s statement,” he said.

More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from, as chosen by our editor, direct to your inbox every Monday.

Sign up