Costa brews up a further rise in sales for owner Whitbread

By GRAEME EVANS
Published on 20/06/2012 01:21

THE rapid growth of Premier Inn and coffee chain Costa continued into the first quarter as owner Whitbread reported better-than-expected sales figures.

Total sales for the group, which also includes Beefeater and Brewers Fayre restaurants, rose 13.9 per cent in the 13 weeks to 31 May, an increase of 4.5 per cent when the impact of site openings is stripped out.

Chief executive Andy Harrison said Costa had maintained its “excellent momentum” with an 8.4 per cent rise in under-lying sales, while Premier outperformed the mid-market and economy sector following a strong April.

He reiterated plans to create 3,500 jobs across the UK this year by opening 4,200 Premier Inn rooms, 350 Costa stores and eight restaurants.

Richard Hunter, head of equities at Hargreaves Lansdown, said the company’s recent success had driven shares up by 21 per cent over the past year, compared to a 4 per cent drop for the FTSE 100.