Whitbread(US:WTBDY)2022-10-25 21:05Financial Data and Key Metrics Changes - The overall performance in the first half was outstanding, with revenues and profits exceeding pre-pandemic levels [3] - The company has returned to paying dividends, with a half-year dividend of 24.4 pence per share to be paid in December [11] Business Line Data and Key Metrics Changes - Premier Inn's hotel performance in the U.K. saw accommodation sales up 35% compared to pre-pandemic levels, outperforming the market by 26 percentage points [4] - The long-term network target for Premier Inn has been increased from 110,000 rooms to 125,000 rooms, with 82,700 rooms currently open [5] Market Data and Key Metrics Changes - In Germany, a cohort of 18 hotels that have been trading for over a year turned profitable, indicating progress in this market [6] - The company is well-positioned to capitalize on a strong market recovery in both the U.K. and Germany [3] Company Strategy and Development Direction - The company continues to execute its "investing to win" strategy, which has positioned it well for market recovery [3] - There is a disciplined approach to managing returns and capital, with a focus on maintaining an investment-grade balance sheet [9][38] Management's Comments on Operating Environment and Future Outlook - Despite macroeconomic uncertainties, the outlook is positive, with significant growth opportunities in the U.K., Ireland, and Germany [11] - The management acknowledges the challenges posed by inflation and the cost of living crisis but remains confident in the company's ability to manage costs effectively [27][28] Other Important Information - The CEO will deliver the next financial update in January 2023, with a planned orderly handover to the new CEO, Dominic Paul [12] - The company has a strong balance sheet that supports ongoing investments and operational stability [7][20] Q&A Session Summary Question: What are the expectations for FY '24 cost growth and utility costs? - Management indicated that they are managing costs well and have hedged a significant portion of utility costs for next year [27][34] Question: What are the plans for food and beverage performance? - The management emphasized that food and beverage is integral to the hotel business and they are investing in improvements [30][31] Question: How is the balance sheet review progressing? - The management confirmed that the balance sheet is regularly reviewed, and they are focused on maintaining investment-grade metrics [38][40] Question: What is the outlook for supply in the market? - Management expects the contraction in supply to continue, with a favorable landscape for growth due to reduced competition [61][62] Question: What is the status of the German market and M&A opportunities? - The management remains optimistic about the German market and is looking for small M&A opportunities [66]