Firm’s profit before tax has been £316m in the six months to 31 August
Costa coffee and Premier Inn owner Whitbread has posted a 20 per cent increase in interim profits due to “disciplined cost management” and growth at Premier Inn, offsetting the falling profits at the Costa coffee chain.
While Whitbread’s profit before tax has been £316m for the six months upto 31 August, Britain’s largest coffee chain Costa has cited higher staff costs and business rates as reasons for its profit declining to £59m.
The profits of Costa slumped 10 per cent during the first half of the company’s financial year reportedly due to a fall in the value of the pound ramping up the cost of coffee bean imports.
Whitbread chief executive Alison Brittain has stated: “We have significant structural growth opportunities, in the UK and internationally, and confidence in our plans to capitalise on these opportunities. Despite the well known short-term economic uncertainty, our performance in the first half was good and we expect to meet expectations for the full year.”
Brittain has also told the BBC that Costa does not plan to increase its coffee prices as costs rise.
More than 2,300 Costa stores are poised for strong growth across Britain as consumers become more willing to spend more per cup for higher quality and innovative drinks.
Over the period, Whitbread has opened 2,000 new Premier Inn rooms and 108 more Costa stores.