Investing.com – Stocks Whitbread plc (LON:) rose after publishing its first half 2025 results.

At 05:10 (09:10 GMT), Whitbread was trading 5% higher at £3,228.

Whitbread reported total sales of £1.57 billion in the first half of 2025, slightly below the consensus estimate of £1.579 billion and in line with UBS forecasts of £1.568 billion.

This petite revenue loss was viewed in a broader context, as the petite shortfall did not significantly change the market’s view of the company’s overall trajectory.

Similarly, pre-tax profit was £340m, which was again slightly below the market consensus of £347m.

While both numbers fell compact of expectations, they were considered relatively minor shortcomings in the context of current operating performance and future potential.

Whitbread’s net income was £220m, well below the consensus estimate of £256m.

The decline was due to adjustments to items totaling £31 million, which included impairment losses on properties in Germany and costs related to novel hotel systems.

This had an impact on financial results, but the company’s long-term strategy, in particular its expansion in Germany and efficiency measures, helped alleviate investors’ immediate concerns.

Whitbread declared an interim dividend of 36.4p per share, slightly less than the expected 39p.

The decision to extend the company’s £100 million share buyback program and its long-term commitment to return to shareholders provided a safeguard against a negative reaction to the lack of a dividend.

Results across all company segments provided further insight. UK accommodation sales in the second quarter fell 1.6% year-on-year, slightly worse than the consensus estimate of a 1% decline.

Food and beverage sales also lagged, recording a decline of 4.9%, slightly worse than the expected decline of 4%.

However, Whitbread’s Premier Inn business in the UK remained solid and the company continued its aggressive expansion in Germany, where it managed to reduce losses from £14 million to £9 million.

One of the key drivers of the positive sentiment was Whitbread’s long-term prospects. The company expects profitability to improve over the next few years, forecasting adjusted pre-tax profit in 2030 to boost by at least £300 million compared to 2025 levels.

In addition, Whitbread has set ambitious targets for its German business, with a target of £70 million in PBT by fiscal year 2030 along with a significant boost in room numbers to 20,000.

Whitbread said it had raised its cost effectiveness forecast to £60 million in financial year 2025, up from a previous estimate of £45 million.

This boost in savings helped offset concerns about rising costs and net debt, which stood at £4.5 billion at the end of the period.

The sale of 51 restaurants, almost twice as many as originally announced, also confirmed the belief that the company is able to improve its operations and generate additional capital.

Whitbread expects to raise between £175 million and £225 million from the sale of these assets by the end of the 2025 fiscal year.