Cooks Coffee Company - Preliminary results for year ended 31 March 2024
Announcement provided by
Cooks Coffee Company Limited · COOK31/05/2024 07:30
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31 May 2024
Cooks Coffee
("Cooks Coffee", the "Company" or the "Group")
Preliminary results for the year ended 31 March 2024
An ethical café group with great cafes owned and run by local people.
Cooks Coffee (NZX:CCC; AQUIS:COOK), the international coffee focused cafe chain and parent company of the Esquires, The Organic Coffee Co brand, which is dual listed on the Aquis Market in
Highlights
- Total franchisee store sales in
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- 75 Group sites in the
- Net store numbers growth in
- Group revenue, which is highly correlated to store sales, up 19% at NZ$4.7m, NZ$3.9m.
- EBITDA of NZ$0.4m before impairment of receivables.
- The focus on suburbs and market towns has sheltered Esquires branded stores from the permanent changes in consumer behaviours post Covid, such as the working from home lifestyle change.
- The strategic direction plus the focus on organic coffee products and an enhanced food offering with local sourcing where possible, delivered by local owners of the franchised stores - 'The local chain' has proved successful for the brand.
- Growth in
- Appointment of Aiden Keegan as Group CEO. Aiden brings more than 20 years' experience with the company in both core markets of
- Esquires Coffee Houses Ireland were awarded the Irish Enterprise Award for 2024 as the 'Best Modern Organic Coffee Shop Enterprise'.
- Esquires Coffee at
- Target store numbers for
Commenting, Cooks Coffee Executive Chairman Keith Jackson said: "We are delighted to report strong sales growth across our existing estate of coffee stores as we continue our expansion programme of new store openings. We have an exciting growth pathway clearly defined and have Aiden Keegan appointed to drive the future development of the business. Aiden is uniquely qualified for the role having spent 14 years as Operations Manager of the Irish business and the last almost six years as CEO of Esquires Coffee
Operational Business Performance
Esquires Coffee
Store sales grew 21% with like for like sales up 6%. The strong pipeline of new outlets that were open for the full years FY23 and FY24 contributed 21.6% of total sales in FY24.
Sales in FY24 were particularly affected by the refurbishment programme at
As at the end of May 2024 there are 64 stores operating, with new stores opened in Colliers Wood and Pinner in
Two new Regional Developers were appointed in the
The Regional Developer model that has been operating in the Southeast of
Store sales increased by 11%, totalling NZ$19.9m (FY23 NZ$17.9m). Like for like store sales were up 6.8% versus FY23.
Outlet numbers at the end of the year were 15, a growth of 15%, with an encouraging pipeline of new stores in development for the balance of 2024 and beyond. Store numbers in
Sales in FY24 were affected by the impact of the fire in the Longford store that meant the store operated from temporary premises for most of the year. The franchisee and staff did a superb job, and sales were maintained at approximately 45% of normal levels. In addition, the Airside store at Swords in
As at the end of May 2024 there are 16 stores operating with a new store opened in Galway in April 2024.
Global
Cooks operating revenue in the global segment was in line with the previous financial year as the international franchised markets continue to recover. New outlets were added in
Balance Sheet
Total equity in the Company reduced to NZ$(4.0)m reflecting primarily the non-cash impairment of goodwill and intangible assets relating to the Triple Two business.
Triple Two
In September 2023, the Triple Two subsidiary was placed into voluntary liquidation.
Triple Two had numerous sites that were non-viable in a post Covid market environment as they were more central business district focused relative to the suburban and smaller town focus of Esquires stores. Information became available showing that commitments were made that potentially could have been significant liabilities for the Company. This information showed that in addition to sites that were no longer viable that the ongoing revenue streams were well below expected levels.
The Triple Two investment was fully written off in the September FY24 half year accounts. This non-cash write-down has resulted in the company reporting NZ$3.99m of negative equity in the full year accounts.
The Board believes that there is no further impact of the Triple Two liquidation going forward.
People
The Company announced the appointment of Aiden Keegan as Group CEO in March 2024. Aiden has had 20 years' experience with the Esquires brand, spending 14 years in the operations team in
After almost 25 years with the Company that he founded our Irish Managing Director, Tony McVerry has advised of his intention to retire at the end of June 2024. He will be replaced by Brendan Duigenan. Brendan has been a lifetime member of the coffee industry and has held senior roles in both AMT and Starbucks in
As part of the planned relocation of the Board to the
The Board would like to acknowledge the dedicated performances of all the parties involved in the Group's activities delivering excellent service to our customers every day. In the core markets of
Outlook
The FY25 financial year has begun strongly with four new stores opened in the
Summary
The Board is encouraged by the strong growth which continues to exceed reported industry growth in both core markets and would like to acknowledge the dedicated performances of all the parties involved in the Group's activities delivering excellent service to our customers every day. In the core markets of
Target stores for the end of March 2025 are 98 with 80 in the
The Group's Esquires brand has a strong pipeline of opportunities as it continues its commitment to building an ethical café group with great cafes owned and run by local people. We look forward to making further progress and to an improved financial performance in the current financial year with the experienced Aiden Keegan at the helm.
Keith Jackson
Executive Chairman
The FY24 financial statements are appended to this announcement and may be accessed here: http://www.rns-pdf.londonstockexchange.com/rns/6179Q_1-2024-5-31.pdf
Enquiries:
Cooks Coffee Company Limited |
+64 21 702 509 ( |
Keith Jackson (Executive Chairman) Aiden Keegan (Chief Executive) |
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+44 (0) 7980 608 440 (
+44 (0) 20 3934 6630 ( |
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IFC Advisory Limited (Financial PR & IR) |
+44 (0) 20 3934 6630 |
Tim Metcalfe, Graham Herring, Florence Chandler
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Oberon Capital (AQSE Corporate Adviser and Broker) |
+44 (0) 20 3179 5300 |
Nick Lovering, Adam Pollock, Mike Seabrook |
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