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Whitbread Confident on Margins, But Costs May Weigh -- Market Talk

Dow Jones Newswires ·  2021/10/26 05:20

0919 GMT - Shares in Whitbread gain 2.6% after the Premier Inn owner reported a narrower first-half pretax loss and said it was confident about returning to pre-pandemic U.K. profit margins. Still, the company is facing wage inflation as a result of rising labor shortages in the U.K. hospitality sector, which means it will have to boost pay significantly and pay out bonuses to attract enough staff, AJ Bell says. That's why Whitbread didn't provide a timescale on a return to pre-pandemic margins, the brokerage says. "At least the company has a strong balance sheet to help it meet staffing and supply-chain challenges," Bell analyst Russ Mould says. (philip.waller@wsj.com)

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