Coffee quality praised Cosco sales growth is difficult to match sterling decline import costs are expected to rise

FX168 Financial News (Hong Kong)-Whitbread, the owner of Costa, reported higher profits on Tuesday, and coffee connoisseurs appreciated its more refined caffeine preparation and brewing. But Whitbread fell sharply on the day amid expectations that the depreciation of sterling had pushed up the cost of restocking.

In the 26 weeks before September, similar sales in stores open for more than a year rose 2.3 per cent, total sales rose 10.7 per cent, and pre-tax profits climbed 4.3 per cent to £65.5 million.

Kashijia opened its first "fine coffee" concept store in London's Covent Garden (Covent Garden) in June, selling hand-ground coffee and a range of high-quality drinks. Earlier this month, a second such store opened in Wandsworth, south-west London.

In addition, Kashijia also said it has made significant progress in its "fast-selling" service for motorists and other time-strapped customers.

Over the same period, similar sales of Whitbread, the parent company of FTSE 100 shares, rose 1.9 per cent, pre-tax profit rose 3.4 per cent to £263.6 million and total revenue rose 8.1 per cent to £1.56 billion.

Premier Inn, the company's hotel chain, was not so lucky, with average room revenue falling 0.2 per cent over the same period and rising 1.7 per cent in the first half. According to Premier Inn, this is mainly due to the addition of new rooms-a total of 1171 new rooms were built during the period.

Whitbread said it would closely monitor "the impact of Brexit on the broader macro economy, including exchange rate and interest rate fluctuations".

Alison Brittain, chief executive, said the group was expected to meet its full-year target despite "an uncertain outlook for the UK economy".

However, she also points out that the company pays for the coffee beans in dollars, so the fall in sterling means that the cost of restocking will rise when the current contract ends. But she said she was unwilling to pull up the lever of price increase first.