Wagamama’s owner, The Restaurant Group, said the relaxation of business restrictions helped its sales almost double in the first half of the fiscal year.
The hospitality operator, which also owns the Barburrito and Frankie & Benny’s chains, told investors on Thursday that revenue soared 95% year-on-year to £423.4m in the six months to July 3. .
With the exception of its concessions division, which was affected by the drop in international travel following the rise of the Omicron variant, all divisions of the business experienced healthy trading during the period.
Growth: Frankie & Benny owner The Restaurant Group revealed revenue rose 95% year-on-year to £423.4m in the six months to July 3
This enabled the business to report an adjusted pre-tax profit of £10.2m, compared with a loss of £19.9m a year earlier, when its outlets could only operate fully for seven weeks.
However, it recorded a statutory loss of £26.1m due to significant impairment charges in connection with worsening inflationary pressures and a troubled near-term economic outlook.
The Restaurant Group said utility costs had risen £2m more than forecast in its last business update in mid-May.
To mitigate future cost increases, it has covered all electricity and gas costs until 2024, a move the company expects will save it between £40m and £70m over the next two years.
It also bought interest rate caps on £125m of gross debt through November 2025 and paid down £89m of a loan facility, making it less vulnerable to any possible base rate hikes.
Cautions: To mitigate future cost increases, The Restaurant Group has covered all electricity and gas costs through 2024, saving you £70m.
“We have taken decisive management action to reduce the impact of cost pressure from the industry,” said CEO Andy Hornby.
“While the uncertain consumer environment presents challenges for the hospitality sector, the group is well positioned to further develop our brands to deliver long-term growth for all stakeholders.”
TRG’s like-for-like revenue across most of its divisions outperformed the broader market for the 33 weeks through Aug. 21, according to tracker Coffer Peach, a leading industry sales monitor.
But trade slowed at Wagamama and leisure outlets in the second half of the period due to the UK’s unprecedented summer heatwave and weakening orders for home delivery.
Demand at concession outlets has also been hit by airlines limiting their summer flight schedule after staff shortages sparked riots at British airports earlier this year.
Lara Martinez, an analyst at research firm Third Bridge, said: “Visit frequency has fallen at UK carriers, while cover spending appears to have risen – an early indicator that people are choosing to eat out with less often, but they take more advantage of the occasion. outside the.
“That said, we are hearing how younger TRG brands, like Wagamama, might be somewhat sheltered as their target audience doesn’t face the same increased costs as older consumers, as reflected in LFL’s sales growth. clearly above the market. ‘
Shares of Restaurant Group rose 3.7 percent to 44.6 pence late on Thursday, though its value has fallen about 55 percent since the start of the year.
Source : uk-times.com