Nandos sees £13m annual pre-tax loss despite rise in turnover & revenue
Nando’s Group Holdings has posted its financial results for the year ending 26 February 2017, showing a turnover rise of 13.9% to £847,914,000 compared with £744,167,000 in the year before.
Nando's saw a pre-tax loss of £12,923,000 compared with a profit of £19,118,000 the previous year, partly due to a significant increase in capital expenditure (the money spent to buy, maintain, or improve fixed assets), to £151.4m (2016: £107.3m).
Revenue stood at £847.9m (2016: £744.2m), an increase of £103.7m, which was driven by organic growth in key markets, which include the UK, Ireland, US, Canada, India, Australia, New Zealand, Malaysia and Singapore, along with increased sales associated with new restaurants and franchise acquisitions.
Gross profit under review was £194.8m, which represents a margin of 23.0% (2016: 25.4%) and reflects investment in employees - the number of which grew to 16,625 compared with 14,430 the previous year - and growing international footprint. Operating profit for the period was £46.7m (2016: £65.9m), reflecting higher administrative costs as we grow our global business.
Group capital investment for the period rose to £151.4m (2016: £107.3m), in line with its strategy to invest in extending our global restaurant footprint and refurbishing existing restaurants, technology and systems. Financing costs therefore increased to £68.4m (2016: £47.7m).
Nando's opened 47 new restaurants taking the total to 908, of which 241 are run on a franchised basis. During the period the company opened its first franchise restaurant in Saudi Arabia. It also acquired an increased stake in its Singaporean and Malaysian businesses, taking ownership from 30% in each to 49%.
During the period, the company disposed of its subsidiary, Gourmet Burger Kitchen Retail and its related subsidiaries.